Sensex, Nifty end flat as Tata stocks tumble, crude oil eases marginally

Indian equities ended mixed on Friday as easing crude and bargain buying lifted the Nifty while Tata and IT stocks dragged the Sensex. The session kept focus on Tata Sons uncertainty, IPO-driven liquidity shifts and whether lower oil and yields can sustain the recovery.

In Short

• Sensex closed marginally down, Nifty gained on easing crude prices
• Tata stocks fell sharply amid leadership and listing uncertainty
• Sixth straight weekly fall marks longest losing streak since 2020

Benchmark indices ended mixed on Friday as easing crude oil prices and bargain buying after the recent sell-off helped the Nifty recover, while heavy selling in IT and Tata Group stocks kept the Sensex under pressure. Strong demand for IPOs also continued to divert liquidity from the secondary market.

The BSE Sensex opened at 74,575.24 and closed at 74,294.96, down 19.63 points or 0.03%. The Nifty 50 opened at 23,334.70 and ended at 23,346.40, gaining 75.80 points or 0.33%.

Despite Friday's recovery, the Sensex and Nifty fell 0.65% and 0.22%, respectively, during the week, marking their sixth straight weekly decline. This is the longest losing streak for the Indian market since 2020.

TATA STOCKS UNDER PRESSURE

Tata Group stocks were among the key drags on Friday, with investors reacting to heightened uncertainty over the potential listing and leadership of Tata Sons following a public dispute.

TCS was the biggest Sensex loser, falling 4.33%. Tata Steel declined 1.73%, while the broader Tata Group stocks also came under pressure.

According to the information provided, Tata Motors Passenger Vehicles, Tata Investment Corporation and Tata Chemicals were among the major Tata stocks that fell sharply, with declines ranging from 2.5% to 11.1%.

The selling reversed some of Thursday's gains, when Tata stocks had rallied after Tata Sons reappointed N Chandrasekaran as chairman for another five years and decided to consider a public listing.

The Tata Sons developments have also come alongside a proposal from the Shapoorji Pallonji Group to monetise a portion of its stake in the holding company.

IT STOCKS DRAG BUT BANKS, METALS SUPPORT NIFTY

IT stocks remained under pressure after their strong performance earlier in the week.

Nifty IT fell 1.03%. TCS declined 4.33%, while Tech Mahindra fell 1.82%, HCLTech dropped 1.43% and Infosys declined 0.56%.

The weakness in IT came amid concerns that prolonged higher interest rates could weigh on global technology spending.

Several heavyweight stocks helped limit the broader market's losses.

Adani Ports was the top Sensex gainer, rising 3.72%. Power Grid gained 2.47%, HDFC Bank rose 2.26%, Bharti Airtel advanced 2.11% and Bajaj Finance gained 1.08%.

Eternal rose 0.82%, L&T gained 0.78%, SBI advanced 0.54% and Axis Bank rose 0.23%.

Among the sectoral indices, Nifty Metal was one of the strongest performers, gaining 1.51%. Nifty Media rose 1.34%, Nifty Realty advanced 1.19%, Nifty Financial Services Ex-Bank gained 1.10% and Nifty MidSmall Financial Services rose 0.98%.

Nifty Pharma gained 0.49%, Nifty PSU Bank rose 0.66% and Nifty Private Bank advanced 0.44%.

Nifty Auto was almost flat, while Nifty FMCG declined 0.23%. Nifty Consumer Durables fell 0.43% and Nifty MidSmall IT & Telecom slipped 0.03%.

The broader market ended stronger than the benchmark indices.

Nifty 100 rose 0.50%, Nifty 200 gained 0.65% and Nifty 500 advanced 0.82%.

Nifty Midcap 50 rose 0.87%, while Nifty Midcap 100 gained 1.24%. Nifty Smallcap 100 was the strongest performer, rising 1.74%.

India VIX fell 7.36% to 11.39, pointing to a sharp decline in market volatility.

Insurers also remained in focus, with HDFC Life and SBI Life gaining 4% and 2.8%, respectively, during the session, according to the information provided.

NSE IPO FULLY SUBSCRIBED

The Rs 2.3-billion NSE IPO was fully subscribed on its second day of bidding, adding to the strong activity in India's primary market.

Five Indian IPOs are currently open for subscription. The continued rush for new issues has become an important factor for the secondary market, as investors allocate money towards IPOs and listing opportunities.

Crude oil prices eased on Friday, providing some relief to Indian equities.

Brent crude was trading at $103.41 a barrel, down 1.35%, while WTI crude was at $101.47, down 0.43%.

However, oil remains above $100 a barrel amid continuing Middle East tensions. Elevated crude prices remain a risk for India because they can put pressure on inflation, the trade balance and the rupee.

Vinod Nair, Head of Research, Geojit Investments Limited, said moderation in crude prices and global yields helped improve risk appetite, although geopolitical uncertainty remained a concern.

"Equities extended their recovery as moderation in crude and global yields improved risk appetite, despite concerns around the continued geopolitical uncertainty. Investor sentiment was further supported by positive global cues following largely anticipated policy actions from major central banks," Nair said.

He said the rebound was broad-based across sectors, although IT stocks declined due to profit booking after their recent outperformance.

"While the recent moderation in oil prices and yields has provided near-term relief, the sustainability of the market recovery will depend on further easing of global macro risks and a meaningful revival in foreign investor inflows," Nair said.

The market therefore enters the next week after six consecutive weekly declines, with crude oil prices, global yields, foreign flows, Tata Sons developments and the continuing IPO boom likely to remain key factors for investors.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

- Ends