Mumbai : Indian benchmark equity indices ended lower on Friday, although they recovered from the day’s lows as buying emerged in IT, FMCG and banking stocks. Continued weakness in global equity markets, foreign fund outflows and rising crude oil prices, however, kept investor sentiment under pressure.
The BSE Sensex declined 120.83 points, or 0.16 per cent, to close at 74,781.76, while the NSE Nifty fell 79.70 points, or 0.34 per cent, to settle at 23,398.10.
Among the Nifty constituents, Hindalco Industries, JSW Steel and Tata Steel were among the top gainers. However, weakness across several key sectors prevented the broader market from making a stronger recovery.
The broader market also remained under pressure. The Nifty MidCap index declined 0.26 per cent, while the Nifty SmallCap index slipped 0.58 per cent.
Sectoral Indices End Mixed
Sectoral indices on the NSE closed on a mixed note. Nifty Metal and Nifty Realty emerged as the biggest laggards, while Nifty Private Bank and Nifty IT were among the better-performing indices, providing some support to the benchmark indices.
Market experts said the late recovery from the day’s lows indicated buying interest at lower levels. However, concerns over global market weakness, elevated crude prices and continued selling by foreign investors continued to weigh on sentiment.
According to analysts, higher crude oil prices, foreign outflows and geopolitical uncertainty could keep market volatility elevated in the near term. At the same time, resilient domestic economic fundamentals and continued institutional buying at lower levels could help limit downside risks and support the market’s medium-term outlook.
Analysts also pointed to higher US producer inflation and stronger-than-expected economic data, which have strengthened expectations of a tighter monetary policy. The resulting rise in bond yields has further contributed to foreign investor outflows from emerging markets, including India.
Rupee Extends Decline
Meanwhile, the Indian rupee continued its downward trend for the fourth consecutive trading session, recording its steepest weekly decline since May 15.
Rising crude oil prices and higher bond yields remained key factors weighing on the domestic currency. The rupee has also faced pressure from persistent foreign fund outflows and broader strength in the US dollar.
Market experts said that in the near term, USD/INR faces resistance around 95.80, while strong support is seen near 95.15. Following the recent sharp upward move in the dollar-rupee pair, analysts expect a period of consolidation in the near term.
Despite the prevailing global uncertainties, market watchers believe strong domestic fundamentals and institutional support could provide some stability to Indian equities and limit the downside over the medium term.
