Indian Markets Slip as Oil Prices and Middle East Tensions Weigh
Indian shares fell on Thursday as rising oil prices and Middle East concerns pressured financials, while the rupee stayed flat on likely central bank intervention.
Indian equities traded lower on Thursday, with the benchmark BSE Sensex slipping 0.6% to 78,488, while the broader NSE Nifty 50 declined 0.3% to 24,556. Heavyweight financial stocks led the decline, with sentiment further dampened by rising crude prices amid persistent worries over the reopening of the Strait of Hormuz. Quarterly earnings continued to drive stock-specific movements across the market.
The Indian rupee remained largely unchanged against the U.S. dollar at 95.2325, heading for a quiet end to the week. The currency was supported by likely dollar-selling intervention from the central bank, which helped offset the negative impact of higher oil prices stemming from Middle East jitters.
In the government bond market, the benchmark 10-year bond was quoted at 101.0975 rupees, with the yield rising 1.5 basis points to 6.7823%. Higher oil prices weighed on sentiment ahead of New Delhi's substantial debt sale scheduled for later this week.
In the derivatives segment, the one-year overnight index swap rate held flat at 5.7675%, while the five-year swap rate edged up 2 basis points to 6.28%. Meanwhile, India's overnight call money rate was recorded at 4.85%, with the overnight TREPS rate at 4.92%.