Sensex falls 319 points, Nifty ends at 25,144 as hot inflation and firmer crude snap three-day rally

Indian equity benchmarks ended a three-session winning streak on Friday, 13 November, as worries over rising inflation and a rebound in crude oil prices prompted selling across most sectors.

The BSE Sensex settled at 81,592.45, down 318.56 points or 0.39 per cent, according to Business Standard and 5paisa. The NSE Nifty 50 closed at 25,144.30, lower by 155.05 points or 0.61 per cent. The Nifty moved between a low of 25,054.40 and a high of 25,246.35 during the session, 5paisa reported.

Broad-based selling

Every major sectoral index on the NSE finished in the red, with realty the weakest. Data compiled by 5paisa showed the Nifty Realty index down 1.69 per cent, followed by metal (0.99 per cent), auto (0.94 per cent), financial services (0.81 per cent), bank (0.80 per cent) and IT (0.79 per cent). The FMCG index was virtually unchanged.

The broader market held up slightly better than the headline indices. The Nifty Midcap 100 slipped about 0.24 per cent and the Nifty Smallcap 100 lost 0.26 per cent. The India VIX, a gauge of expected volatility, fell about 6.5 per cent to 15.54, according to 5paisa.

Among individual stocks, Business Standard reported that Amber Enterprises jumped about 12 per cent intraday after strong September-quarter revenue growth, while SpiceJet rose nearly 5 per cent ahead of a board meeting on 18 November to consider raising capital.

Inflation and oil weigh

The main drag was the October consumer price inflation reading released on Thursday evening. Retail inflation rose to 6.09 per cent from 5.54 per cent in September, crossing the upper end of the Reserve Bank of India's 2 to 6 per cent tolerance band, while food inflation climbed to 8.94 per cent. Several economists quoted by Business Today said the figure strengthens the case for another rate increase at the RBI's policy announcement on 4 December.

Oil added to the caution. Brent crude hovered near $95.70 a barrel, up from about $92 in the previous Indian session, after reports of attacks on Saudi energy facilities and continued disruption to shipping in the Strait of Hormuz, 5paisa noted. Business Standard also pointed to rising Indian and US bond yields.

For Indian households and borrowers, the bigger question after Friday's session is whether the RBI tightens policy again next month, which would affect loan rates as well as market sentiment heading into December.