- Indian benchmark indices declined, Sensex, Nifty ended lower.
- Brent crude oil rose amid Iran, Hormuz geopolitical concerns.
- New auction mechanism caused divergence in benchmark indices.
The Indian benchmark indices witnessed a decline on Friday as the Sensex declined 455 points to close at 78,499 and the Nifty fell 79 points to close trade at 24,570 at 3:30 PM.
In the 30 share BSE Sensex, among the top gainers were stocks such as TCS, Mahindra and Mahindra, State Bank of India, TechMahindra and Bharat Electronics. Meanwhile, the laggards included stocks like L&T, UltraCement, Hindustan Unilever, Bharti Airtel and Eternal.
In the broader markets, the Nifty 100 fell 0.17 per cent and the Nifty Midcap 50 gained 0.26 per cent as volatility declined. Sectorally, the Nifty Auto index jumped 1.84 per cent and the Nifty Financial Services Ex-Bank index tumbled 1.91 per cent.
Previously, during the early morning session, the Sensex opened 235.36 points lower at 78,699.80 and the Nifty opened 24.30 points lower to start trade at 24,608.25 at 9:15 AM.
Crude Oil Rises Amid Iran, Hormuz Concerns
Brent crude, the global oil benchmark, traded 1.16 per cent higher at USD 83.45 per barrel.
Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said the overnight retreat in Wall Street came as investors reduced exposure to risk assets amid renewed concerns over energy prices and geopolitical uncertainty.
He said the increase in crude prices followed growing doubts over the pace and outcome of diplomatic negotiations involving Iran and the Strait of Hormuz. This has revived concerns that disruptions to one of the world’s most critical energy corridors could continue for longer than previously anticipated.
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New Auction Mechanism Causes Market Divergence
Benchmark indices have been showing divergence since Monday following the introduction of a new auction mechanism for stocks with futures and options (F&O) contracts.
The Closing Auction Session (CAS) in the equity cash segment became operational on Monday. The new auction-based mechanism is aimed at making the price discovery process for eligible stocks more transparent and robust.
Asian Markets Trade Mixed
Asian markets remained mixed. South Korea’s KOSPI and Japan’s Nikkei 225 traded lower, while Shanghai’s SSE Composite and Hong Kong’s Hang Seng quoted higher.
Meanwhile, US markets ended lower on Thursday after Wall Street retreated from recent record highs.
FIIs Remain Net Sellers
According to exchange data, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 17.86 crore on Thursday.
Renewed concerns over energy prices and geopolitical uncertainty continued to influence global market sentiment.
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