Indian stocks slip as oil, inflation cap weekly rally

Indian equities retreated on Friday, with the Nifty 50 down 0.61% at 25,144.3 and the Sensex off 0.39% at 81,592.45, as higher oil prices and inflation concerns offset foreign investor buying. Business Recorder reported that October retail inflation exceeded the Reserve Bank of India’s 2%-6% target range, raising expectations of tighter monetary policy. Brent crude also advanced amid continuing attacks in the Middle East.

Despite the daily decline, both benchmarks ended the week higher, with the Nifty gaining 0.5% and the Sensex 0.7%; 13 of 16 major sectors recorded weekly gains. Foreign investors brought in about $8 billion in November, while small-cap and mid-cap indices advanced 3.6% and 2.1%, respectively. Banks and financial stocks fell on Friday, while the IT index lost 3.2% for the week, ending a six-week run of gains. State Bank of India rose 6% over the week after strong quarterly results, and Paytm reached a record close after preliminary RBI approval for its payments unit to issue prepaid products.