Indian shares finish flat as Middle East uncertainty drags on
- Nifty 50 fell 0.02% to 23,654.70 and the BSE Sensex shed 0.18% to 75,183.36
India’s equity benchmarks finished flat on Thursday on subdued market sentiment after a rebound in oil prices rekindled concerns over inflation for crude-importing India, with earnings-led gains from specific companies limiting losses.
The Nifty 50 fell 0.02% to 23,654.70 and the BSE Sensex shed 0.18% to 75,183.36, in a session marking the Sensex’s weekly derivatives expiry.
Derivative expiry sessions typically see heightened volatility as investors roll over or close large positions, boosting trading activity.
Both benchmarks rose about 0.8% in intraday trade, following crude’s overnight fall of 5.6% after U.S. President Donald Trump said negotiations with Tehran were in their “final stages”.
Brent traded at around $104 a barrel on Thursday following Iran’s announcement of steps to tighten its control over theStrait of Hormuz, with the global market likely only months away from a breaking point - a prolonged supply crunch.
India’s central bank is likely to start raising interest rates as early as June on increasing inflation risks from higher crude prices, economists at Standard Chartered said.
“The fourth quarter results have been, so far, good. The negative impact of the energy crisis will be felt in the first quarter of fiscal 2027. But if crude price continues to decline, the remaining quarters will be reasonably good,” said VK Vijayakumar, chief investment strategist at Geojit Investments.
Eleven of the 16 major sectors advanced on Thursday. The broader small-caps rose 0.6% and mid-caps settled flat.
Nifty 50 constituents Apollo Hospitals and Grasim Industries rose 3.1% and 6.2% to hit record highs following quarterly earnings results.
The index’s heavyweight constituents traded in a mixed fashion, with ICICI Bank up 0.6% and Reliance Industries down 0.7%.
Among other stocks, eyewear retailer Lenskart Solutions jumped 2.4% after it posted a quarterly revenue jump.
Electric two-wheeler maker Ola Electric lost 3.9% as March-quarter revenue fell.
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