Indian shares edge lower on profit taking, Mideast talks eyed
- Nifty 50 fell 0.14% to 24,196.75 points and the Sensex lost 0.16% to 77,988.68
Indian shares settled marginally lower on Thursday, as investors booked profits following recent sharp gains, even as global markets rose for a 10th straight day to record highs on optimism over a deal to end the Middle East war.
In India, the Nifty 50 fell 0.14% to 24,196.75 points and the Sensex lost 0.16% to 77,988.68. The benchmarks had gained about 0.8% earlier in the day, on top of a 1.6% jump in the previous session.
“Traders are booking profits after the rally as they await further progress in the Middle East. The key concern is that Strait of Hormuz remains largely shut,” said Dharmesh Kant, head of equity research at Cholamandalam Securities.
Six of the 16 major sectors ended lower, while the broader small-caps and mid-caps added 0.9% and 0.6%, respectively.
Investors are hopeful that the war in the Middle East may be near an end, with a key Pakistani mediator in Tehran and President Trump’s administration talking up hopes for a deal that would open the strait, which remains largely shuttered.
Brent crude was up 1.6% at $96 per barrel on Thursday, trading below $100 per barrel for the eighth straight session. Lower crude prices are positive for importers of the commodity, such as India.
“If the supply through the strait shows signs of normalising, the Nifty 50 could surpass 25,000 points,” Kant said.
Metal stocks rose 1.5% on higher commodity prices amid supply disruptions due to the Iran war.
Aluminium companies Hindalco and Nalco jumped 2.8% and 2.1%, respectively, after Kotak Institutional Equities upgraded them to “reduce” from “sell” on rising prices.
Heavyweight financials dropped 0.4%, while IT stocks gained 0.9%.
Among individual stocks, HDB Financial gained 6.5% after posting a 41.4% rise in quarterly profit, driven by growth in its consumer portfolio and improving asset quality.
Broadband services provider GTPL Hathway and telecom and data networking firm Tejas Networks lost 4.7% and 3.9%, respectively, after reporting quarterly losses.
Comments