Sensex, Nifty Close Slightly Lower as Strait of Hormuz Tensions Lift Oil Prices
MUMBAI — Indian stocks ended slightly lower Friday as rising crude oil prices and renewed concerns over the Strait of Hormuz weighed on investor sentiment.
The Sensex slipped 71 points, or 0.09 percent, to close at 78,009.25, while the Nifty fell 29.85 points, or 0.12 percent, to 24,366.00.
Oil prices moved higher amid reports that the United States could maintain its naval blockade at the Strait of Hormuz for an indefinite period, raising fresh concerns about global energy supplies.
The development is particularly important for India because of the country’s heavy reliance on imported crude. Higher oil prices can increase import costs and add to inflationary pressure.
Trading remained cautious throughout the session. The Nifty spent much of the day below 24,400 before recovering briefly in afternoon trade to an intraday high of 24,405. The rebound failed to hold as selling pressure returned at higher levels.
Analysts said the 24,300 to 24,250 range remains an important near-term support zone for the index.
Tata Motors Passenger Vehicles, Jio Financial Services and Oil and Natural Gas Corporation were among the biggest losers on the Nifty.
Selling was more pronounced in the broader market. The Nifty MidCap index declined 0.53 percent, while the Nifty SmallCap index fell 0.69 percent.
Sectoral performance was mixed. The Nifty Consumer Durables index gained nearly 1 percent, supported by buying in select discretionary stocks.
Pharmaceutical and real estate shares were among the weaker areas of the market, with the Nifty Pharma and Nifty Realty indices finishing among the worst-performing sectoral gauges.
Investors continued to monitor developments in the Middle East for signs of further disruption to global energy markets.
Market participants said some domestic factors remained supportive despite the cautious mood, including a relatively stable rupee, easing in India’s 10-year government bond yield and improving participation from foreign institutional investors. (Source: IANS)
