Market Close: Sensex, Nifty End Lower; Oil Shares Drag And Rupee Hurts

Mumbai, May 15:Marketssnapped two days of gains to end lower on Friday as metal, oil-linked, PSU bank and realty stocks weighed while the rupee hitting a record low added to caution amid elevated global crude oil prices and rising US yields.

The BSE Sensex fell 160.73 points, or 0.21%, to close at 75,237.99, while the NSE Nifty 50 declined 46.10 points, or 0.19%, to settle at 23,643.50. Broader market sentiment remained weak, with declining stocks significantly outnumbering advances. Out of the traded shares, 2,381 stocks declined against 1,631 advances.

Biggest Losers

Sectorally, metal stocks emerged among the biggest losers, dragging the Nifty Metal index down nearly 2% amid profit-booking and fears that the US Federal Bank may raise rates affecting demand.

Shares of Vedanta, Hindustan Zinc, Hindustan Copper and Nalco came under pressure after a sharp rally earlier in the week linked to rising silver prices and higher import duties on precious metals.

Oil-linked counters also remained weak as Brent crude continued to trade above $106 per barrel amid tensions surrounding the Strait of Hormuz. The sustained rise in crude prices reignited concerns over inflation, India’s import bill and corporate margins. Oil & Gas index fell 1.67 percent as shares of oil marketing companies such as Bharat Petroleum, Hindustan Petroleum and Indian Oil Corporation remained under pressure despite the hike in retail fuel prices.

PSU bank and realty stocks also witnessed broad-based selling. The PSU bank indexdeclined 1.8 per cent, and the realty index fell 1.79 per cent.

Risk Aversion

Midcap and smallcap stocks underperformed the benchmark indices, reflecting risk aversion among investors. Meanwhile, India VIX rose nearly 1%, signalling heightened market volatility.

The rupee remained another key concern for markets as the unit hit a fresh record low beyond 96 against the dollar as surging oil prices and rising U.S. Treasury yields continued to trigger foreign fund outflows and pressure emerging market currencies.

IT Rebounds

Despite the weak broader market tone, information technology stocks provided some support to the indices, with their indexrising 1.3 per cent. Shares of Infosys, Tata Consultancy Services and HCL Technologies gained after bleeding for four days as concerns over AI disrupting their business models hit sentiment. Media and FMCG stocks also ended in positive territory.

Stock Specific

Among individual stocks, Tata Motors Passenger Vehicles rallied despite a profit drop, ending up as the top Nifty gainer. Dr Reddy’s Labs and Infosys also wound up on the top gainers list. On the flip side, Hindalcodeclinedover three per cent to end up as the top Nifty loser. Tata Steel also joined the list of top losers.

Vodafone Idea remained one of the most actively traded counters ahead of its board meeting to discuss fundraising plans and quarterly results. Meanwhile, Saregama India surged after reporting strong quarterly earnings and a sharp expansion in operating margins.

Markets are likely to remain volatile in the near term as investors closely track crude oil prices, currency movements, global bond yields and developments in the Middle East.

Source:

• Exchanges