Indian equity markets ended Friday’s session lower as a sharp acceleration in retail inflation to a two-year high weighed on investor sentiment. Selling across financial services, automobile, realty and metal stocks dragged the benchmarks, while rising crude oil prices and uncertainty over global developments added to the pressure.
The BSE Sensex closed under 81,600, crashing over 300 points, while the NSE Nifty50 finished below 25,150, tanking more than 150 points.
Inflation Surprise Puts Markets Under Pressure
India’s retail inflation accelerated to 6.09% in October, against 5.54% in September, according to government data. This marked the highest reading in two years and raised fresh concerns about the persistence of price pressures.
Food inflation climbed to 8.94%, adding to the overall increase in consumer prices. The latest figures could complicate the Reserve Bank of India’s monetary policy outlook, particularly if elevated inflation persists in the coming months.
The inflation data emerged as a significant domestic trigger for equities, with investors assessing its possible implications for interest rates, consumption and corporate profitability.
Financial Services, Auto Stocks Lead Sectoral Decline
The weakness was particularly visible in financial and rate-sensitive stocks.
At midday, the Nifty Financial Services index was down 1.25%, making it the worst-performing sectoral gauge. Realty stocks also came under pressure, with the Nifty Realty index declining 1.12%. Nifty Auto, Nifty Bank and Nifty Metal fell 1.10%, 1.09% and 1.07%, respectively.
Energy stocks offered some resilience, with the Nifty Energy index gaining 0.32% in afternoon trade.
Among individual shares, Shriram Finance, InterGlobe Aviation and HDFC Bank featured among the major Nifty50 losers during early trade. Power Grid Corporation, Mahindra & Mahindra and Nestle India also witnessed selling pressure in subsequent market updates.
Crude Oil Rebound Adds To Economic Concerns
International oil prices recovered sharply amid renewed geopolitical uncertainty surrounding Iran.
Brent crude futures rose 3.61% to $96.11 per barrel, while WTI crude advanced 2.76% to $88.92 per barrel, according to the early market readings supplied.
For India, higher oil prices carry implications beyond the energy sector. An increase in the import bill can put pressure on the rupee and inflation, while businesses in aviation, paints and oil marketing may face higher operating costs.
Foreign Investors Continue Buying Indian Equities
Foreign institutional investors maintained their buying interest in the previous session, even as domestic funds booked profits.
According to provisional data, FIIs purchased equities worth Rs 7,830.60 crore on November 12. DIIs, meanwhile, sold shares worth Rs 6,331.17 crore.
The resulting net institutional inflow stood at Rs 1,499.43 crore, reflecting continued overseas buying despite selling by domestic institutions.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
