Indian markets close lower amid uncertainty over energy prices, yields

Share markets closed in the red on Friday, with Sensex down 70 points and Nifty 50 falling by 29 points. The dip was attributed to investor caution over energy prices and global bond yields, though a late recovery was seen in some sectors.

The share markets in the country closed under pressure on Friday as investors awaited greater clarity on the outlook for energy prices and global bond yields. The Nifty 50 index closed at 24,366.00, down 29.85 points or 0.12 per cent. The BSE Sensex also closed lower at 78,009.25, down 70.71 points or 0.09 per cent.

Market Analysis

Vinod Nair, Head of Research, Geojit Investments Limited, said, "A sideways trend persisted in the market as investors awaited greater clarity on the outlook for energy prices and global bond yields. However, the market witnessed a recovery from the day's lows, led by consumer durables and discretionary consumption stocks, supported by improving demand trends."

He added that better-than-expected corporate earnings during the quarter, along with supportive domestic factors that could drive revisions to FY27 earnings estimates upward, continue to create opportunities for a bottom-up stock selection approach.

Nair also said that stability in the rupee, moderation in India's 10-year bond yield, and a gradual improvement in FII participation are providing support to the domestic macro-environment and supporting the inflation trajectory.

Top Movers and Sectoral Performance

Among the top gainers in the Nifty 50 were Apollo Hospitals, Bharti Airtel, Adani Enterprises, Adani Ports, and Wipro. Tata Motors Passenger Vehicle, Jio Finance, ONGC, Asian Paints, and SBI were among the top losers.

Among sectoral indices, Nifty Media was the only index to close in the green, gaining 0.96 per cent. Nifty Auto declined 0.54 per cent, Nifty FMCG fell 0.56 per cent, Nifty IT declined 0.34 per cent, Nifty Pharma lost 1.04 per cent, and PSU Bank fell 0.72 per cent.

Analyst's Take on Market Dip

Brent crude oil prices have moderated compared to the beginning of the week but remain elevated and are currently trading at USD 87 per barrel. Riyank Arora, Associate Vice President - HNI & Derivatives, Hedged.in, said, "Today's dip looks like routine profit booking rather than a change in trend, provided the key supports hold. The larger picture still favours the bulls. A buy-on-dips approach in quality names, backed by disciplined risk management, remains the sensible way to play this."

Asian Markets Performance

In other Asian markets, Japan's Nikkei 225 index gained 0.75 per cent to close at 68,823. Singapore's Straits Times was up 0.41 per cent at 5,743. South Korea's KOSPI index gained 2.36 per cent to close at 6,977. Hong Kong's Hang Seng Index declined 1.17 per cent to close at 25,102, while Taiwan's Weighted Index lost 0.46 per cent to close at 45,811. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)