Indian shares log weekly losses as higher oil, bond yields dent risk appetite

By Indian shares ended flat on Friday and posted weekly losses, as elevated crude oil prices and pressure in global bond markets kept investors cautious. The Nifty 50 settled 0.08% higher at 24,252, while the BSE Sensex closed flat at 77,540.83. Both indexes fell 0.5% and 0.6%, respectively, for the week in which higher crude prices, driven by an escalating conflict in the Middle East, reinforced inflation concerns and pushed global bond yields higher. Stronger yields raise borrowing costs and can also curb overseas inflows into riskier assets such as emerging market equities. Other Asian peers also posted weekly losses. 'No market ever prices an ongoing conflict (and its consequences) fully. What we can see is that option skew shows participants paying for downside protection rather than taking a directional view,' said Rishabh Nahar, partner and fund manager at Qode Advisors. 'This suggests the market is bracing for escalation in the situation, not dismissing the risk.' Twelve of the 16 major sectors logged weekly losses. Small-caps gained 1.2% while mid-caps fell 0.1%. Heavyweight private banks rose 1.3% with Kotak Mahindra Bank and Axis Bank gaining 3% and 2.3%. Goldman Sachs initiated coverage on 14 lenders, citing an improving earnings outlook, while Bernstein said banks could sustain healthy growth in FY2027 on robust liquidity and a recovery in nominal credit growth. IT stocks, which derives a significant share of revenue from the United States, fell 2.6% on concerns over U.S. inflation. Among other stocks, Tata Motors PV fell 5%, making it the biggest decliner in the Nifty 50 for the week. The stock has lost 9.1% over the last six sessions after the company reported a decline in quarterly profit. Tata Motors announced price hikes of up to 25,000 rupees ($261.23) on its cars, SUVs from September. On the day, Welspun Corp jumped 15.3% after the pipe maker received a record $1.8 billion supply order.