Indian equity markets ended lower on Friday, recording their worst weekly performance in months as rising crude oil prices and sharp declines in banking stocks weighed on investor sentiment.
The BSE Sensex fell 0.43 per cent to close at 76,059.77, while the NSE Nifty 50 declined 0.43 per cent to 23,767.45. The benchmark indices also extended their losing streak to five consecutive sessions.
For the week, the Nifty dropped 2.33 per cent, its steepest decline in four months, while the Sensex lost 2.7 per cent, marking its biggest weekly fall in two months.
The sell-off came as Brent crude briefly crossed USD 100 a barrel after escalating tensions in the Middle East. Oil prices climbed more than 10 per cent during the week after U.S. President Donald Trump warned of military action against Iran and the Houthis following attacks on Saudi oil tankers in the Red Sea, raising concerns over global energy supplies.
Higher crude prices are seen as a risk for India, which imports the bulk of its oil requirements. Sustained high oil prices could fuel inflation, widen the current account deficit and put pressure on corporate earnings.
Banking stocks led the decline during the week. HDFC Bank fell 9.4 per cent, its sharpest weekly decline in nearly two-and-a-half years, amid concerns over pressure on net interest margins. Axis Bank also dropped 7.6 per cent after reporting weaker-than-expected margins for the June quarter.
Among other major stocks, Infosys and InterGlobe Aviation slipped after reporting June-quarter earnings that failed to impress investors.
Thirteen of the 16 sectoral indices ended the week in negative territory. The Nifty Private Bank index declined 4.3 per cent, while the Financial Services and Bank indices fell 3.7 per cent and 3.1 per cent, respectively. Small-cap and mid-cap indices also ended lower.
Despite the broader weakness, Bajaj Auto gained 6.6 per cent, and Nestlé India rose 1.1 per cent after reporting better-than-expected quarterly results.
Market participants will continue to monitor developments in the Middle East, movements in crude oil prices and the progress of the monsoon, which are expected to influence investor sentiment in the coming weeks. |
