It was another lacklustre session for the Indian stock market on Friday, August 7, as a rebound in crude oil prices amid renewed uncertainty over the Strait of Hormuz raised fresh doubts about a potential peace deal in the Middle East. Weakness in financial stocks outweighed gains in auto and technology shares, keeping the benchmark indices under pressure.
The Nifty 50 fell 0.32% to close at 24,557, while the Sensex declined 0.59% to settle at 78,491. The broader markets ended on a mixed note, with the Nifty Midcap 100 rising 0.22%, while the Nifty Smallcap 100 slipped 0.06%.
Among the sectoral indices, Nifty Financial Services, Consumer Durables, Chemicals, and Realty witnessed heavy selling, while auto, IT, and metal stocks ended in the green.
The weakness in financial heavyweights followed the Reserve Bank of India’s (RBI) draft proposal, which raised concerns over potential restrictions on certain revolving credit products offered by non-bank lenders.
In the Middle East, uncertainty persisted over the full restoration of shipping through the Strait of Hormuz, even as Iran and Oman moved closer to an agreement on managing traffic through the strategic waterway.
Under the proposed Iran-Oman agreement, Tehran is reportedly seeking to prohibit US and Israeli vessels from transiting the Strait of Hormuz and require countries it considers hostile to pay compensation before being granted passage.
Meanwhile, Brent crude futures for October delivery rose 1.3% to $83.55 a barrel, while WTI crude futures for September gained 1.1% to $78.17.
