Indian Equities Close Lower Amid Global Weakness

Mumbai: Indian equity benchmarks closed lower on Friday but staged a recovery from their intraday lows as buying in information technology, FMCG and banking shares helped limit the damage amid weak global market sentiment . The BSE Sensex fell 120.83 points, or 0.16%, to settle at 74,781.76, while the NSE Nifty 50 declined 79.70 points, or 0.34%, to finish at 23,398.10. Sectoral performance remained mixed. Nifty Private Bank and Nifty IT were among the stronger indices, providing support to the headline benchmarks during the volatile session. Hindalco Industries, JSW Steel and Tata Steel were among the leading Nifty gainers. The broader market remained under pressure, with the Nifty MidCap index falling 0.26% and the Nifty SmallCap index losing 0.58%. Nifty Metal and Nifty Realty were among the weakest sectoral indices at the close. Weak global equities, elevated crude oil prices , geopolitical uncertainty and foreign institutional investor outflows continued to weigh on Indian stocks. Market experts said resilient domestic fundamentals and institutional buying at lower levels were helping restrict deeper losses, although volatility could remain elevated in the near term. Higher US producer inflation and stronger economic data have reinforced expectations of tighter monetary policy, pushing bond yields higher and maintaining pressure on global risk assets. The Indian rupee remained another concern for investors, extending its decline for a fourth consecutive session. The currency recorded its steepest weekly fall since May 15 as rising crude prices and higher global bond yields increased pressure on the domestic forex market. For USD-INR, market watchers see immediate resistance around 95.80, while strong support is placed near 95.15. Following the recent sharp rise in the currency pair, analysts expect a period of consolidation in the near term as investors track crude oil, global yields and foreign fund flows.