Indian shares swing to gains after volatile closing auction; Mideast cloud lingers
- Nifty 50 settled 0.2% higher at 23,477.8 and the BSE Sensex added 0.19% to 74,902.59
Indian shares edged higher on Thursday after a volatile closing auction session (CAS), even as an escalating Middle East conflict and a jump in Brent crude prices above $102 per barrel kept investors jittery.
Indicative closing levels for benchmarks Nifty 50 and BSE Sensex briefly jumped over 1% higher during the CAS, compared with a slight loss after the end of normal trading at 3:15 p.m. IST.
The Nifty 50 settled 0.2% higher at 23,477.8 and the BSE Sensex added 0.19% to 74,902.59.
The volatility was expected to be elevated in Sensex amid the expiry of its weekly derivatives contracts. CAS, introduced in early August, has amplified last-minute swings in Indian stocks, given the relatively thinner liquidity during the session.
The benchmark indexes were largely muted throughout the regular trading session on Thursday.
Brent crude continued its rise, surpassing $102/ barrel, stoking concerns about inflation and growth in import-oil-dependent India.
Iran said it attacked 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers in the largest attacks on shipping in the six-month-old conflict.
The Nifty and Sensex have dropped 2.5% and 2.7%, respectively, so far in September, ending lower in six of the eight sessions this month.
On Thursday, eight of the 16 major sectors fell. The broader small-caps and mid-caps lost 0.1% and 0.4%.
“Technically, the market is vulnerable to further correction, and the fundamental macro trends continue to deteriorate,” said V K Vijayakumar, chief investment strategist at Geojit Investment.
Higher oil prices have also left investors nervous ahead of U.S. inflation data that could give clues to the Federal Reserve’s policy decision expected next week, said two traders.
The U.S. producer price index data is expected later in the day, while the consumer price inflation report is scheduled for Friday.
ONGC gained 1.4%, aided by higher crude prices that boost revenues and profit margins of upstream oil producers.