Sensex Slips 71 Points, Nifty Ends at 24,366 as Crude Oil, Middle East Tensions Weigh

Indian equity benchmarks ended a choppy, range-bound session marginally lower on Friday, with the BSE Sensex shedding 70.71 points, or 0.09 percent, to close at 78,009.25, while the NSE Nifty50 slipped 29.85 points, or 0.12 percent, to settle at 24,366.00. The Nifty Bank index underperformed the broader market, falling 144.15 points, or 0.25 percent, to end at 57,491.10.

A session of two halves

The day's trade was volatile from the opening bell. Indices dipped in early trade as elevated crude oil prices and lingering uncertainty over the Strait of Hormuz kept sentiment cautious, before paring a chunk of the losses through the afternoon as global cues turned more supportive. Softer-than-expected US inflation data released overnight raised hopes that the US Federal Reserve would have more room to ease policy, which helped Indian markets recover from their intraday lows even though the benchmarks ultimately closed in the red.

Broader markets underperformed the headline indices, with the Nifty MidCap index down 0.53 percent and the Nifty SmallCap index down 0.69 percent, pointing to more pronounced selling pressure outside large-cap stocks.

Sector and stock moves

Consumer durables stocks were the standout performers of the session, bucking the broader weakness. On the other side of the ledger, auto, metal, pharma and financial stocks all came under pressure and dragged on the indices. Tata Motors' passenger vehicle business saw its shares slip roughly 5 percent after the company reported an 80 percent plunge in consolidated Q1 net profit, largely due to weakness at Jaguar Land Rover, even though brokerages flagged a more resilient domestic demand outlook. Aurobindo Pharma shares, which had opened higher, reversed course to trade lower by the end of the session. KEC International shares slid to a 52-week low after its latest quarterly earnings disappointed investors. LG Electronics India was among the notable gainers, with its stock advancing after brokerage Nuvama noted the company's June-quarter performance was superior to that of most peers.

Crude and currency backdrop

Crude oil prices stayed elevated through the session, continuing to be the market's primary overhang. Traders have been closely tracking developments around the Strait of Hormuz, a critical global shipping corridor, after weeks of tension between Iran and the United States kept a premium on oil prices. Persistently high crude remains a concern for India, a major oil importer, given its knock-on effects on the current account deficit and domestic inflation.

Investor flows in focus

The session's price action came a day after domestic institutional investors bought close to Rs 4,353 crore worth of Indian equities even as foreign portfolio investors turned net sellers, offloading a little over Rs 510 crore. That pattern of steady domestic buying cushioning foreign outflows has been a recurring theme in Indian markets through much of the year, and analysts said it likely helped limit Friday's downside as well.

Market participants said the modest decline reflected routine profit booking after a choppy week rather than any fresh shock, with attention now turning to how crude prices and the broader Middle East situation evolve heading into next week, alongside the tail end of the Q1 FY27 corporate earnings season.

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