The Indian stock market remained lower for the fourth straight day on Friday, August 14, tracking a sharp jump in crude oil prices as prospects of an immediate deal to reopen the Strait of Hormuz faded, while renewed selling by overseas investors kept the market under pressure.
The Nifty closed 0.12% lower, while the Sensex fell 0.19% to 77,931. The broader markets also extended their losing streak, with both the Nifty Midcap 100 and Nifty Smallcap 100 indices ending in the red. In terms of sectoral performance, pharma led the losses, declining 0.90%.
It was followed by metals, auto, cement, PSU banks, and Nifty Oil & Gas, all of which fell by more than 0.50%. On the gaining side, only media and consumer durables ended higher, rising 1% and 0.76%, respectively. Brent crude prices surged 5% as the US prepared to impose hefty economic sanctions on Iran in an effort to isolate the country and loosen its grip on the Strait of Hormuz, which Iran has used as a strategic pressure point since the conflict began in late February.
Treasury Secretary Scott Bessent said Washington would impose unprecedented economic measures while maintaining its naval blockade of Iranian ports, with further announcements expected next week, as per the media reports. Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, said, "Indian equity markets ended lower on Friday as renewed geopolitical tensions in the Middle East pushed crude oil prices higher, overshadowing the positive global cues from Wall Street's record close.
A notable positive for the domestic market was the Nifty 50's ability to defend the 24,325 support zone for the second consecutive session."(more to come)