Sensex falls to over 2-week low as financials weaken
India’s BSE Sensex falls about 0.4% to 77,772, its lowest since July 29, as Middle East tensions, elevated crude prices and RBI loan-pricing proposals weigh on sentiment.
India’s BSE Sensex fell about 0.4% to 77,772 on Friday, reversing gains in the last session and reaching its lowest level since July 29, as investors remained cautious amid persistent Middle East tensions and elevated crude oil prices.
Investor sentiment was also weighed by weakness in financial stocks after the Reserve Bank of India proposed loan-pricing changes that could reduce banks’ pricing flexibility and pressure loan yields and margins.
Among individual stocks, Tata Motors Passenger Vehicles was under pressure, falling about 4.7% after the automaker reported an 80% drop in first-quarter profit, hurt by higher costs, foreign-exchange losses and weakness at Jaguar Land Rover.
Meanwhile, LG Electronics India climbed about 6.8% after reporting a more than 27% rise in first-quarter profit and retaining its full-year revenue growth target, helped by strong summer demand for air conditioners and refrigerators.
The benchmark is on track for a weekly decline of about 0.9%.