Indian shares post weekly losses as elevated crude keeps sentiment subdued
Indian shares rose on Friday after declining for four straight sessions but logged weekly losses as high crude prices and bond yields earlier in the week outweighed robust domestic growth and tax-collection data. The Nifty 50 rose 0.1% to 23,897.7, while the Sensex gained 0.48% to 76,515.43. Ahead of the closing auction, the indexes were up 0.27% and 0.65%, respectively. For the week, the…
Indian shares experienced a week of decline, despite a slight rise on Friday, as high crude prices and rising bond yields dampened investor sentiment. The Nifty 50 and Sensex, the main stock market indices, managed to close at 23,897.7 and 76,515.43 respectively, up 0.1% and 0.48%, respectively. However, for the week, they recorded losses of 1.2% and 1%, marking their fourth consecutive weekly decline and their longest losing streak in five months.
This sentiment was further fueled by the surge in Brent crude, which surged by 7% this week due to heightened concerns over U.S.-Iran tensions, leading to a rise in global bond yields and thus putting pressure on risk assets.
Samrat Dasgupta, CEO of Esquire Capital Investment Advisors, highlighted that crude oil remains the central concern for investors, dampening optimism even with strong domestic growth and tax-collection data. A fresh wave of Initial Public Offerings (IPOs) could also contribute to muted trading activity in the secondary market next week.
Among the major 16 sectors, 12 declined during the week. Small-cap stocks saw a gain of 0.1%, whereas mid-cap stocks slipped by 1.5%. The auto sector faced a 4% dip due to fears of slowing sales growth, and the auto index fell by 4%, with Maruti Suzuki and Mahindra & Mahindra taking the hit.
However, Coal India bucked the general trend, climbing 3.6% as investors anticipated better earnings in the upcoming September quarter, supported by higher coal sale premiums and increased offtake. On Friday, capital market-linked stocks rallied following the announcement by the Securities and Exchange Board of India (SEBI) to review the methodology for determining derivatives settlement prices, in response to volatility caused by the recently introduced closing auction.
BSE shares jumped by 3.1%, while Angel One, Groww, and Motilal Oswal rose by 4.8%, 2.2%, and 2.4%, respectively. Despite a dovish tone from a Federal Reserve governor, who alleviated concerns over rising global bond yields and boosted equities, a general sense of risk aversion prevailed ahead of U.S. jobs data, which could sway the path of future interest rate decisions.
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