Indian stock markets closed lower on trading weekend

Mumbai: Indian stock markets closed the week lower as elevated crude oil prices and rising global bond yields kept investors cautious amid renewed inflation concerns.

The Nifty 50 rose 0.08 per cent to 24,252, while the BSE Sensex closed almost flat at 77,540.83.

For the week, the indices declined 0.5 per cent and 0.6 per cent, respectively.

Higher crude prices, fuelled by the escalating conflict in the Middle East, have heightened concerns over inflation and contributed to a rise in global bond yields.

Higher yields can increase borrowing costs and reduce the attractiveness of riskier assets such as emerging-market equities, weighing on foreign investment flows.

Sectoral performance remained mixed, with 12 of the 16 major sectors ending the week lower. Small-cap stocks bucked the broader trend, gaining 1.2 per cent, while the mid-cap index slipped 0.1 per cent.

Private-sector banks were among the better performers on Friday, with the sector gaining 1.3 per cent. Kotak Mahindra Bank and Axis Bank rose 3 per cent and 2.3 per cent, respectively.

Banking stocks received support after Goldman Sachs initiated coverage on 14 lenders, citing an improving earnings outlook. Bernstein also expects banks to maintain healthy growth in FY27, supported by strong liquidity and a recovery in nominal credit growth.

Information technology stocks, however, remained under pressure. The IT index declined 2.6 per cent for the week as investors remained concerned about inflation in the US, a key market for Indian technology companies.

Tata Motors Passenger Vehicles was the biggest weekly decliner on the Nifty 50, falling 5 per cent on Friday. The stock has declined 9.1 per cent over the past six sessions after the company reported a fall in quarterly profit.

The automaker has also announced price increases of up to Rs 25,000 on its cars and SUVs, effective from September, as it seeks to offset cost pressures.

Among individual stocks, Welspun Corp surged 15.3 per cent after the pipe manufacturer received a record USD 1.8 billion supply order. (BVI)