Sensex, Nifty snap 3-day rally as oil, inflation worries weigh

Synopsis

The Indian stock indices experienced a retreat as increasing crude oil costs negatively impacted market sentiment. Retail inflation hit 6.09% in October, breaching the tolerance threshold set by the Reserve Bank of India. This spike raised alarms about possible future rate adjustments. Sectors like realty, auto, and cement faced considerable selling activity due to these economic dynamics. However, the benchmarks concluded the week with minor gains.

Mumbai: Indian benchmark indices snapped a three-session winning streak on Friday as rising crude oil prices and a sharper-than-expected increase in retail inflation weighed on investor sentiment. Inflationary concerns and the possibility of a rate increase at the next monetary policy review dented D-Street sentiment.

The BSE Sensex fell 318.56 points, or 0.39%, to close at 81,592.45, while the NSE Nifty50 declined 155.05 points, or 0.61%, to 25,144.30. Despite Friday's decline, the benchmarks ended the week with gains. The Sensex rose 0.7%, while the Nifty gained 0.45%.

Brent crude futures climbed to around $95.5 a barrel from nearly $92, as escalating attacks on Saudi energy infrastructure and disruptions to shipping through the Strait of Hormuz threatened global oil supplies. Investor concerns intensified after India's retail inflation rose to 6.09% in October, crossing the RBI's 6% upper tolerance limit for the first time in two years.

"The market's risk environment has become more complicated towards the end of the week with October retail inflation rose to 6.09%, moving above the RBI's upper tolerance band, while food inflation accelerated to 8.94%, raising concerns about the interest-rate outlook and household consumption," said Gaurav Garg, head -research, Lemonn. He also said sustained increase in crude prices could put pressure on India's current account, the rupee, corporate input costs and inflation, potentially offsetting some of the benefits of foreign fund inflows. "Looking ahead, our near-term view remains cautiously positive, but we expect markets to undergo consolidation with intermittent volatility rather than continue moving higher in a straight line," Garg said.

Live Events

Sectorally, realty, auto and cement stocks witnessed the sharpest selling pressure. Banking, financial services and metal shares also weighed on the benchmarks.

Broader markets also ended lower, though losses were relatively contained with both Nifty Midcap 150 Index and Nifty Smallcap 250 Index down 0.3% each.

(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...moreless

Is CoreWeave's movement signalling a return of the AI trade?

How India’s INR22.5 lakh crore gold loan boom is hiding a big hole

KYC and KYB: Pidilite's margin keeps finding its way back, though costlier raw materials can knock it off course – Part 2 of 3

Business of Odd Things: The farm that needs no land, freshwater, or fertiliser

KYC and KYB: Inside Pidilite, the company that turned Fevicol into a word for a strong bond – Part 1 of 3

Seoul halts trading, Nifty has its best week since 2021: Money leaving the AI trade – will it land in India?

Find this comment offensive?

Choose your reason below and click on the Report button. This will alert our moderators to take action

Name

Reason for reporting:

Foul languageSlanderousInciting hatred against a certain communityOthers

Your Reason has been Reported to the admin.

Continue reading with one of these options:

Limited Access

Free

Login to get access to some exclusive stories

& personalised newsletters

Login Now

Unlimited Access

Starting @ Rs120/month

Get access to exclusive stories, expert opinions &

in-depth stock reports

Subscribe Now

ET

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now

Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer

Avail Offer

Claim Now

Already a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising

Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?

Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds

Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year

2Invest Wisely With Smart Market Tools & Investment Ideas

Get daily trade ideas from SEBI-registered research analysts.

Grow your wealth with stock ideas & sectoral trends.

All-in-one stock research with Stock Score, peer comparison & key signals.

Get to know where the market bulls are investing to identify the right stocks.

Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.

Analyze the market sentiments & identify the trend reversal for strategic decisions.

Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.

3Stay informed anytime, anywhere with ET ePaper

ePaper - Print View

Read the PDF version of ET newspaper. Download & access it offline anytime.

ePaper - Digital View

Read your daily newspaper in Digital View & get it delivered to your inbox everyday.

Wealth Edition

Manage your money efficiently with this weekly money management guide.

4Times Of India Subscription (1 Year)

TOI ePaper

Read the PDF version of TOI newspaper. Download & access it offline anytime.

Deep Explainers

Explore the In-depth explanation of complex topics for everyday life decisions.

Health+ Stories

Get fitter with daily health insights committed to your well-being.

Personal Finance+ Stories

Manage your wealth better with in-depth insights & updates on finance.

5Enjoy Complimentary Subscriptions From Top Brands

Docubay Subscription

Stream new documentaries from all across the world every day.