Sensex ended almost flat, rising 3 points, while Nifty gained 20 points as financial stocks offset broader selling.
Elevated crude prices and global bond yields kept investor sentiment cautious, with IT, auto and FMCG stocks under pressure.
Rupee weakened to ₹95.72, while Brent crude remained elevated near $92 amid continued US-Iran tensions.
Sensex, Nifty End Flat As Bond Yields, Crude Keep Investors Cautious
Financial heavyweights offered support, while elevated global yields and crude prices kept gains in check
Sensex, Nifty End Flat As Bond Yields, Crude Keep Investors Cautious
Summary
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Indian benchmark indices ended almost flat on Friday as gains in financial heavyweights helped offset selling across IT, auto and other sectors, while elevated global bond yields and crude oil prices kept investors cautious.
The BSE Sensex ended at 77,540.83, up 3.11 points or 0.01%, while the NSE Nifty gained 20.15 points or 0.08% to settle at 24,252.00.
Among Nifty stocks, Power Grid Corp, HDFC Life, Nestle, Kotak Mahindra Bank and Bharat Electronics were the top gainers. Maruti Suzuki, Trent, InterGlobe Aviation, Infosys and HCL Technologies were among the biggest losers.
Sectorally, buying was seen in metal and realty stocks, while auto, FMCG, IT, media and pharma stocks faced selling pressure.
The broader market remained mixed, with the Nifty Midcap index ending flat and the Smallcap index rising 0.7%.
Global Cues Keep Markets In Check
Asian markets were mostly higher on Friday despite an overnight retreat on Wall Street, as investors assessed the impact of the US Treasury's plan to increase government debt buybacks.
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Japan's Nikkei 225 fell 0.3%, while South Korea's Kospi gained 0.9% and Hong Kong's Hang Seng rose 1.1%. Shanghai was marginally higher, while Australia's ASX 200 slipped 0.3%.
However, US Treasury yields climbed again, with the 10-year yield at around 4.69% and the 30-year yield at 5.24%, raising concerns over borrowing costs and equity valuations.
Brent crude fell 0.5% to $93.35 a barrel, although prices remained elevated amid ongoing US-Iran tensions.
"The elevated global bond yields continue to cause worry in the market. The recent US Treasury's move to ease the bond yields failed to provide lasting comfort, given surging crude prices and persistent inflation fears," said Vinod Nair, Head of Research, Geojit Investments.
He added that the RBI's hawkish meeting minutes had pushed India's 10-year yield to a two-month high, while recent services PMI data pointed to domestic resilience.
Financial Stocks Provide Support
Nair said strong value buying in financial heavyweights, supported by robust credit growth and attractive valuations following the recent correction, helped the market remain flat.
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"Stable metal prices are also providing crucial support to commodity stocks," he added.
The domestic market therefore continued to see selective buying despite broader concerns around global yields and energy prices.
Rupee Remains Under Pressure
The Indian rupee also remained weak, declining around 0.07% to 95.72 against the US dollar as crude prices stayed elevated near $92 a barrel amid uncertainty over the US-Iran situation and the Strait of Hormuz.
"Higher crude prices are adding to India's import-cost and inflation concerns, keeping pressure on the domestic currency," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
He said the Dollar Index remained range-bound near 98.68, limiting additional downside pressure on the rupee. The currency weakened around 0.27% during the week and is expected to remain volatile, with a near-term range of 95.30-96.00.