Sensex, Nifty End Lower On Middle East Tensions

Indian shares ended Friday’s session slightly lower as weak China data revived fears of a global slowdown and heightened geopolitical tensions in the Middle East sent oil prices soaring.

Positive macro readings on industrial output and retail inflation boosted optimism about India’s growth story and helped limit overall losses in the broader market.

The benchmark S&P BSE Sensex hit an intra-day low of 65,895.41 before recouping losses to end the session down 125.65 points, or 0.19 percent, at 66,282.74.

The broader NSE Nifty index settled 42.95 points, or 0.22 percent, lower at 19,751.05 after having hit a low of 19,635.30 earlier.

Wipro, SBI, Infosys, Adani Enterprises and Axis Bank fell 1-2 percent in the Nifty pack, while Tata Motors soared 4.7 percent after the company’s arm JLR reported its highest-ever performance in the first half of financial year 2023-24 (FY24).

Nestle India, Tata Consumer Products, IndusInd Bank and HCL Technologies rose 2-3 percent.

Global cues were weak as stronger-than-expected U.S. inflation data revived Fed rate hike bets and new data from China pointed to persistent deflationary pressures in the world’s second-largest economy.

Also, the conflict in the Middle East looked set to escalate after Israel’s military today called for all civilians of Gaza City, more than 1 million people, to relocate south within 24 hours.

The dollar and Treasury yields fell slightly today after climbing in the U.S. trading session overnight on the back of stronger-than-expected U.S. inflation data.

Oil prices jumped around 4 percent on supply concerns after the U.S. tightened sanctions against Russian crude exports.