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INDIA STOCKS-Indian shares decline as oil surge, inflation jitters weigh

By Reuters News

By Bharath Rajeswaran and Vivek Kumar M

Nov 13 (Reuters) - Indian shares declined on Friday as elevated crude prices and inflationary pressures weighed on sentiment, countering the support from sustained foreign institutional inflows.

Retail inflation breached the Reserve Bank of India's upper limit of the 2%-6% tolerance range in October, data showed on Thursday, as rising food prices squeezed household budgets, fuelling expectations of further monetary tightening.

Brent crude futures traded around $95.7 per barrel, up from $92 on Thursday, as attacks on Saudi energy infrastructure escalated and shipping disruptions through the Strait of Hormuz threatened global oil flows. O/R

"Rising inflation and volatility in oil prices could weigh on markets in the near term after recent gains, while the medium- to long-term outlook remains robust, given the resilience in earnings and revival in foreign inflows," said G Chokkalingam, founder and head of research at Equinomics Research.

The Nifty 50 .NSEI fell 0.37% to 25,209.25 and the Sensex .BSESN edged 0.21% lower to 81,740.02, as of 9:54 a.m. IST.

Ten of the 16 major sectors logged losses. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 rose 0.3% and 0.1%, respectively.

High-weight financials .NIFTYFIN lost 0.8% after rising 3.2% in the last three sessions. HDFC Bank HDBK.NS, the heaviest-weighted benchmark stock, lost 1.5%.

Foreign investors continued buying Indian equities, recording net purchases of 78.31 billion rupees ($832.71 million) on Thursday, according to provisional data.

This marked their ninth consecutive session of net buying and took November inflows to $8 billion, the highest monthly tally since December 2020.

Among individual stocks, Madras Fertilizers MDFT.NS jumped 11.1% after posting a fourfold rise in September-quarter profit.

TD Power TDPS.NS gained 3.2% after its second-quarter profit nearly doubled year-on-year.

Pondy Oxides PNDY.NS fell about 9% after its September-quarter profit nearly halved Y/Y.

NMDC NMDC.NS lost 1.5% after posting a drop in net profit and revenue in the September quarter.

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