Indian equity markets ended lower on Friday after a volatile trading session, as rising crude oil prices, rupee weakness, and inflation worries dampened investor sentiment despite gains in IT stocks.
The benchmark indices lost momentum in the second half of the session following broad-based selling across banking, metal, oil & gas, and realty sectors.
Sensex And Nifty End In Red
The BSE Sensex closed around 75,238, down nearly 161 points or 0.21%, while the Nifty 50 settled at 23,643, declining 0.19%.
During intraday trade, the Nifty had climbed close to 23,839 before giving up gains amid increased market volatility.
Oil Prices And Rupee Weakness Weigh On Markets
Investor sentiment remained under pressure due to:
- Rising global crude oil prices
- Weakness in the Indian rupee
- Inflation concerns linked to higher fuel costs
- Global geopolitical tensions surrounding the Strait of Hormuz
Analysts said higher energy prices could hurt corporate margins and increase inflationary pressure on the broader economy.
Banking, Metal And Realty Stocks Decline
Several key sectors ended sharply lower:
- Nifty Bank fell 0.77%
- PSU Bank index dropped 1.8%
- Nifty Metal declined nearly 2%
- Realty and oil & gas indices slipped around 1.8% and 1.7% respectively
Broader markets also witnessed profit booking, with midcap and smallcap stocks ending lower.
IT Stocks Provide Market Support
Despite weakness in most sectors, IT stocks outperformed and helped limit losses.
The Nifty IT index rose 1.3%, led by gains in:
- Tech Mahindra
- Infosys
- Tata Consultancy Services
- HCL Technologies
Defensive sectors such as FMCG, pharma, and media also witnessed selective buying.
Top Gainers And Losers
Among Sensex stocks, major gainers included:
- Tech Mahindra
- Infosys
- Power Grid Corporation of India
- Maruti Suzuki
- Bharti Airtel
Major laggards included:
- Reliance Industries
- State Bank of India
- Tata Steel
- UltraTech Cement
- Mahindra & Mahindra
Volatility Remains Elevated
India VIX, often called the market’s fear gauge, rose nearly 1% to around 18.8, indicating heightened caution among traders.
Market experts said investors are closely watching:
- Crude oil price movements
- Rupee stability
- Bond yields
- Global geopolitical developments
- Possible policy measures from the government and the Reserve Bank of India
Outlook For Markets
Analysts believe markets may remain volatile in the near term as investors assess the impact of rising energy costs and inflation on corporate earnings and economic growth.
However, strong quarterly earnings and relatively attractive valuations are expected to provide some support to equities.