High oil price, inflationary fears subdue market

Mumbai: High crude oil prices and fears of a rise in core inflation subdued the key Indian equity indices on Friday.

According to market observes, crude oil at $67 per barrel and caution over a likely rise in core inflation pointed out in the Reserve Bank of India (RBI)'s latest minutes of the monetary policy committee meet kept investors away. The S&P BSE Sensex closed 26.87 points or 0.07 per cent lower at 35,871.48, while the broader NSE Nifty50 ended flat at 10,791.65.

“Market turned range-bound after the release of RBI minutes which hints at elevated core inflation and threat of global growth slowdown,” said Vinod Nair, Head of Research, Geojit Financial Services.

“Inflow of domestic funds to market remains positive, while tepid reaction from FIIs and lack of major triggers are impacting investors’ sentiments.” The index toppers were Yes Bank, Vedanta, Tata Motors, NTPC and Mahindra & Mahindra, and the laggards were Kotak Mahindra Bank, HDFC Bank, Reliance Industries, IndusInd Bank and Bajaj Finance. (IANS)

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