Nifty, Sensex end flat as global bond yields and high crude keep markets volatile

MUMBAI: Indian benchmark indices ended the week on a volatile note on Friday as elevated global bond yields, high crude oil prices and geopolitical concerns continued to weigh on investor sentiment. The Nifty 50 gained 20.15 points, or 0.08 per cent, to close at 24,252, while the BSE Sensex ended at 77,540.83, gaining 3.11 points, or 0.00 per cent.

Vinod Nair, Head of Research, Geojit Investments, said elevated global bond yields continued to remain a concern for the market. “The elevated global bond yields continue to cause worry in the market. The recent US Treasury’s move to ease the bond yields failed to provide lasting comfort, given surging crude prices and persistent inflation fears,” Nair said.

He said India’s 10-year bond yield had moved to a two-month high following the RBI’s hawkish meeting minutes, driven by domestic inflation risks and tighter liquidity. At the same time, Nair said recent services PMI data pointed to resilience in the domestic economy despite uncertainty in global markets.

“However, strong value buying in financial heavyweights fuelled by robust credit growth and attractive valuations after the recent correction is helping the market trade flat,” he said.

On the sectoral front, most major indices closed lower, with Nifty Metal, Private Banks and Realty being the exceptions. The Nifty Auto index declined 0.64 per cent, while Nifty FMCG fell 0.71 per cent. Nifty IT declined 0.69 per cent, Nifty Media lost 0.37 per cent and Nifty Pharma fell 0.53 per cent. The Nifty PSU Bank index declined 0.46 per cent, while the Healthcare index fell 0.59 per cent.

Vikram Kasat, Head Advisory, PL Capital, said the market remained largely range-bound, with domestic factors balancing continued global uncertainty. “The Indian markets were largely restricted within range today, with the Sensex and Nifty moving modestly higher, reflecting a balancing act of positive domestic factors versus continued global uncertainties,” Kasat said.

He added “Moving ahead, the markets will continue to be highly volatile and stock-specific, with crude prices, foreign fund inflows, rupee movement, and international trends being some of the key factors,”.

Brent crude oil prices remained elevated at around USD 93 per barrel at the time of reporting. Gold prices rose more than 1.2 per cent on Friday to Rs 1,61,240 per 10 grams for 24-karat gold. Silver also gained more than 1.27 per cent to Rs 2,46,321 per kg. The Indian rupee was trading at Rs 95.72 per US dollar, depreciating 0.023 paisa against the dollar.

In other Asian markets, Japan’s Nikkei 225 declined 0.60 per cent to close at 65,825. Singapore’s Straits Times gained 0.30 per cent to 5,688, while Hong Kong’s Hang Seng rose 1.28 per cent to 26,031. Taiwan’s weighted index gained 0.64 per cent to close at 45,224, while South Korea’s KOSPI rose 0.87 per cent to 6,912. (ANI)