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India Stocks: India's stock benchmarks set for worst week in four months as crude tops $100

INDIA STOCKS-India's stock benchmarks set for worst week in four months as crude tops $100

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By Bharath Rajeswaran and Vivek Kumar M

- Indian shares fell on Friday, pressured by the rise in oil to above $100 per barrel as the Middle East crisis escalates, while a slide in IT company Infosys and airline operator IndiGo on weaker-than-expected earnings further hurt sentiment.

The benchmark Nifty 50 .NSEI fell 0.95% to 23,642.45, while the BSE Sensex .BSESN shed 1.03% to 75,609.4 by 10:00 a.m. IST, both on course for fifth straight session of losses.

They have lost about 2.8% and 3.2% during the week and were on course for their worst performance in four months.

U.S. President Donald Trump promised a "major military punishment" for Iran and its Houthi allies on Thursday after the Yemeni fighters struck two Saudi oil tankers in the Red Sea, extending the Middle East war to a second major shipping chokepoint.

Higher oil prices pose a key risk for India, the world's third-largest crude importer and consumer, by stoking inflation, widening the trade gap, and squeezing growth and corporate margins.

"The concerns over Mideast tensions have been further amplified this week by a sharp rise in crude oil prices, hurting investor sentiment," said Sunny Agrawal, head of fundamental research at SBI Securities.

Fifteen of the 16 major sectors logged losses. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 fell 1.3% and 1%, respectively.

Infosys INFY.NS lost about 1% and Interglobe Aviation INGL.NS fell about 2.2% after subdued June quarter results.

Oil marketing companies BPCL BPCL.NS, HPCL HPCL.NS and Indian Oil IOC.NS fell about 2% each on rising crude oil prices.

Ramco Systems RMCS.NS fell 10% on posting a quarterly profit drop.

Bucking the broader trend, Cyient CYIE.NS and Suryoday Small Finance Bank SURO.NS gained 2% and 7%, respectively after they posted a rise in June quarter profit.


(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)

((VivekKumar.M@thomsonreuters.com))

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