India shares log longest weekly losing run since 2020 as oil prices bite

Indian shares ended Friday with modest gains, but the week still produced the longest run of weekly losses since 2020, according to Business Recorder. The Nifty 50 rose 0.34% to 23,140.50 and the Sensex advanced 0.43% to 73,895.74, yet both indexes lost ground over the week, falling 0.9% and 0.5% respectively in what marked a seventh consecutive weekly decline.

High oil prices have lifted bond yields and fuelled inflation worries, said Pankaj Pandey, head of retail research at ICICI Securities, who noted that investors are now building in the chance of more interest rate increases from central banks. He cautioned that sustained high yields could weigh on the wider economy and raise doubts about equity valuations. Brent crude traded near $105.5 a barrel while the market balanced hopes for a US-Iran truce against escalating Houthi attacks on Saudi Arabia.

Financials came under heavier selling on worries that proposed caps on insurance commissions could hit earnings, while information technology shares dropped on concerns over rising US rates and artificial intelligence. Market observers do not expect a meaningful turnaround until Mideast tensions improve substantially. Elsewhere, the National Stock Exchange of India completed a long-awaited listing after a ten-year delay, debuting quietly at a valuation near $47 billion, while Coal India led the Nifty 50 weekly gainers with a rise of about 4% on strong demand and an encouraging earnings outlook.