Indian Shares Open Lower as Financials Drag, Oil Climbs

Indian equity benchmarks opened in the red on Friday, pressured by heavyweight financial stocks and a third consecutive session of rising crude oil prices.

The Nifty slipped 0.19% to 24,591.40, while the BSE Sensex fell 0.38% to 78,647.18 by 9:20 a.m. IST. Seven of the 16 major sectoral indices logged losses, while broader small-cap and mid-cap stocks were largely flat.

Financials were the biggest drag, with Bajaj Finance dropping 4.5% and its holding company Bajaj Finserv losing 3.1%, pulling the sector down 0.8%. The decline followed a draft proposal from the Reserve Bank of India that investors believe could restrict non-bank lenders from offering certain revolving-credit products.

Meanwhile, Brent crude futures climbed above $83 a barrel, extending gains for a third straight session. The rise was driven by concerns over shipping through the Strait of Hormuz after Iran, in coordination with Oman, proposed restrictions on vessels deemed hostile. Higher oil prices are a negative for India, which imports most of its crude requirements.