Indian stock markets end week lower
Mumbai, Aug 14: Indian stock markets today ended the week lower, snapping a two-week winning streak as elevated crude oil prices and continued uncertainty in the Middle East weighed on investor sentiment.
The Nifty 50 declined 0.8 per cent during the week to 24,366, while the BSE Sensex fell 0.6 per cent to 78,009.25. Both benchmarks ended largely unchanged on Friday.
Brent crude prices climbed 4.6 per cent over the week to around USD 87 a barrel amid limited progress in peace talks between the US and Iran aimed at ending the prolonged conflict in the Middle East.
The rise in oil prices has heightened concerns for India, the world’s third-largest crude oil importer, given the potential impact on inflation, corporate costs and the current account.
The US said on Thursday that it could maintain a naval blockade of Iran indefinitely and increase economic pressure on Tehran as ceasefire negotiations remained stalled.
The week’s decline was broad-based, with 15 of the 16 major sectoral indices ending lower. The Nifty Financial Services index dropped 1 per cent, while the metals index was the biggest sectoral loser, falling 1.9 per cent.
Reliance Industries declined 1.9 per cent during the week, partly after MSCI announced a reduction in the company’s weight in its flagship index as part of a periodic review.
In contrast, mid-cap stocks gained 0.5 per cent, while the small-cap index declined 0.7 per cent.
The weakness in Indian equities stood out against gains across several other Asian markets, which were heading for their strongest weekly performance in about two months. South Korea’s Kospi surged 11.5 per cent during the week, supported by strong investor interest in artificial intelligence-related stocks.
Among individual stocks, Tata Motors Passenger Vehicles fell 4.3 per cent on Friday, making it the biggest loser on the Nifty 50. The decline followed an almost 80 per cent drop in quarterly profit, attributed largely to higher costs.
LG Electronics India, meanwhile, jumped 9.6 per cent after reporting strong quarterly results and maintaining its full-year revenue target.
The week also marked the conclusion of the quarterly earnings season. Analysts said corporate results were largely ahead of expectations, although the outlook for Indian equities remains sensitive to crude prices, geopolitical developments and broader global risk appetite. (BVI)
