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Indian stock markets displayed a mixed trend on Friday as the impact of tightened consumer lending rules by the Reserve Bank of India (RBI) weighed on financial stocks. The NSE Nifty 50 index saw a marginal rise of 0.12%, standing at 19,789.05, while the S&P BSE Sensex experienced a minor dip of 0.01%, resting at 65,971.25 by 9:59 a.m. IST.
The drop in financial-related indexes, particularly banking and financial services sectors, by approximately 0.75% each for banks and private banks, and a 2% decrease for public sector banks, contributed to this mixed performance. This decline is attributed to concerns regarding loan growth and profitability following the RBI's stricter regulations on personal loans and credit cards.
Major players like State Bank of India, Axis Bank, and Bajaj Finance were among the leading losers on the Nifty, experiencing falls ranging from 0.5% to 2.5%.
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However, other significant sectors within the Nifty witnessed gains, driven by optimism surrounding the likelihood of the U.S. Federal Reserve refraining from further interest rate hikes in this cycle, coupled with a decline in crude oil prices to a four-month low.
The decrease in oil prices bodes well for India, a major importer of the commodity. Companies like Bharat Petroleum Corp Ltd, Hindustan Petroleum Corp Ltd, and Indian Oil Corp saw increases of 1% each in response to this development.
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Anita Gandhi, director at Arihant Capital Markets, acknowledged the slip caused by the decline in financials but emphasized an overall positive market sentiment. She highlighted the resurgence of foreign investor buying after a 15-session selling streak and the drop in crude oil prices as potential momentum boosters.
Throughout the week, the Nifty 50 and Sensex have recorded gains of around 1.5% each, primarily driven by the robust performance of the information technology (IT) index, which surged by 5.45% and is set for its most exceptional week in 16 months.
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