Indian shares decline on oil spike as US-Iran attacks dent peace hopes

Indian shares fell on Friday as oil prices rose again after renewed US-Iran attacks in the Middle East dented hopes of a resolution to the conflict, worsening the outlook for Asia’s third-largest economy. The Nifty 50 fell 0. 43% to 24, 222. 65, as of 10: 23 a. m. IST, while the BSE Sensex shed 0. 48% to 77, 484. 74. Eleven of the 16 major sectors were trading in the red. The broader small-caps and mid-caps rose 0. 3% and 0. 1%, respectively. Heavy-weight HDFC Bank fell 1. 5%, while ICICI Bank and Reliance Industries rose 0. 8% each. Other Asian markets fell 1. 3% as Brent jumped above $100 a barrel, after briefly slipping below the mark in the previous session, after the US and Iran exchanged fire on Thursday in the most serious test yet of their month-long ceasefire. “Markets have come under pressure due to renewed geopolitical concerns, reflecting fragility in sentiment and vulnerability to Middle East developments, ” said Ponmudi R, CEO of Enrich Money. Britannia Industries fell 4. 5%, as multiple brokerages flagged a moderation in sales as a concern despite the biscuit maker posting a rise in the March quarter profit. “March quarter results were a big miss, with supply disruptions in international business due to the West Asia (Middle East) conflict hurting sales in the final month of the quarter, ” said analysts at Morgan Stanley. Healthcare services providers Vijaya Diagnostics, Thyrocare Technologies jumped 3% and 8%, after reporting a sharp uptick in quarterly profit. Thermax climbed 8. 3%, after the engineering firm posted a 19% rise in fourth-quarter profit, helped by robust demand for its industrial heating and cooling products. Dabur India rose as much as 3. 7% on a quarterly profit beat, supported by steady domestic demand and benefits from consumption tax cuts. Multiple brokerages expect the company to benefit from pricing hikes and cost-control measures to protect margins despite higher input inflation.

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