Stock markets end lower amid geopolitical uncertainty

Market benchmark indices Sensex and Nifty ended lower on Friday as elevated oil prices and the prolonged US-Iran impasse weighed on investor sentiment.

The 30-share BSE Sensex dropped 70.71 points, or 0.09 per cent, to settle at 78,009.25. During the day, it declined 395.59 points, or 0.50 per cent, to 77,684.37.

The 50-share NSE Nifty dipped 29.85 points, or 0.12 per cent, to end at 24,366.

From the Sensex pack, Asian Paints, InterGlobe Aviation, NTPC, Power Grid, State Bank of India and HCL Tech were among the major laggards.

Bharti Airtel, Adani Ports, ICICI Bank and Titan were among the winners.

Brent crude, the global oil benchmark, advanced 0.17 per cent to USD 87.15 per barrel. “Indian equity markets ended largely unchanged on Friday, struggling to build on supportive global cues as persistent uncertainty surrounding the US-Iran standoff and the Strait of Hormuz kept investors cautious heading into the weekend. Despite a softer US inflation reading and record closes on Wall Street, elevated crude oil prices and the absence of any diplomatic breakthrough continued to cap risk appetite,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said. Geopolitical tensions remained the dominant market driver, he added.

“Indian equity markets ended lower on Friday as renewed geopolitical tensions in the Middle East pushed crude oil prices higher, overshadowing the positive global cues from Wall Street’s record close. A notable positive for the domestic market was the Nifty-50’s ability to defend the 24,325-support zone for the second consecutive session,” Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.

The BSE SmallCap Select index declined 0.65 per cent and the MidCap Select index dipped 0.13 per cent.

Among sectoral indices, Housing Finance declined 1.40 per cent, MidSmall Private Banks Quality Tilt 0.58 per cent, MidSmall Private Banks 0.46 per cent, Oil & Gas 0.45 per cent, Energy 0.44 per cent and Services 0.39 per cent.

Hospitals jumped 1.49 per cent, Telecommunication climbed 0.86 per cent, Insurance 0.21 per cent and Consumer Durables 0.17 per cent.  On the weekly front, the BSE benchmark declined 489.92 points, or 0.62 per cent, and the Nifty dipped 204.65 points, or 0.83 per cent.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 and Shanghai’s SSE Composite index ended higher, while Hong Kong’s Hang Seng index settled lower.

Markets in Europe were trading mostly higher.

US markets ended in positive territory on Thursday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 510.69 crore on Thursday, according to exchange data.

On Thursday, fag-end buying helped the Sensex end the session in the positive territory. The 30-share index settled 113.61 points, or 0.15 per cent, higher at 78,079.96. The Nifty was marginally down by 40.10 points, or 0.16 per cent, to end at 24,395.85, registering its third day of decline.