MUMBAI: Benchmark stock indices Sensex and Nifty gave up early gains to close lower on Friday on sell-off in metals, oil and gas and PSU bank stocks and caution among investors amid rising crude oil prices.
The 30-share BSE Sensex fell 160.73 points, or 0.21 percent, to settle at 75,237.99, after swinging between gains and losses during the session. The benchmark had risen nearly 470 points in early trade before losing momentum.
The 50-share NSE Nifty was down 46.10 points, or 0.19 percent, at 23,643.50, snapping its two-day winning streak.
Tata Steel, State Bank of India, Eternal, Reliance Industries, UltraTech Cement, Mahindra & Mahindra, Bharat Electronics Ltd, Larsen & Toubro, Trent, Axis Bank and Asian Paints were the top laggards among Sensex stocks.
On the other hand, Infosys, Tech Mahindra, PowerGrid, Adani Ports, Maruti Suzuki India, Bharti Airtel, Kotak Mahindra Bank, Hindustan Unilever and Sun Pharmaceuticals were the top gainers.
“Investors have been cautious following the recent increase in easing, with rising bond yields, a weaker rupee and rising crude oil prices rekindling inflation concerns,” said Vinod Nair, Head of Research, Geojit Investments Ltd.
Favorable valuations and a solid fourth-quarter earnings print are softening the downside. The focus has shifted to possible fiscal and monetary measures to protect the rupee and stabilize the balance of payments, he added.
“Globally, rising yields have halted the AI-led rally. Short-term direction is likely to be driven by geopolitical developments — specifically, any progress in reopening the Strait of Hormuz, with the Trump-Xi meeting positioned as a key catalyst,” Nair said.
The rupee fell below the 96 mark against the US dollar on Friday for the first time as higher crude oil prices and inflation concerns weighed on the local unit. The local currency closed at a record low of 95.94 (temporary) against the US dollar later.
Oil marketing companies raised petrol and diesel prices by Rs 3 per liter on Friday to pass on some of the blow from the rise in global crude prices caused by the war in Iran. CNG prices in cities like Delhi and Mumbai rose by Rs 2 per kg, raising fears of a rise in inflation.
Brent crude rose more than 3 percent to $109.23 a barrel.
Meanwhile, the country’s exports in April rose 13.78 percent to $43.56 billion despite global challenges, Commerce Secretary Rajesh Agrawal said. Imports rose 10 percent year-on-year to $71.94 billion in April. The trade deficit during the month was 28.38 billion dollars.
Asian markets ended broadly lower, with South Korea’s Kospi falling more than 6 percent. Markets in Europe were trading lower. US markets ended higher on Thursday.
Foreign Institutional Investors (FIIs) bought shares worth Rs 187.46 crore on Thursday and Domestic Institutional Investors (DIIs) bought shares worth Rs 684.33 crore, according to exchange data.
On Thursday, the 30-share BSE Sensex jumped 789.74 points to close at 75,398.72. The 50-share NSE Nifty climbed 277 points to end at 23,689.60.
