By Rama Venkat
BENGALURU (Reuters) – Indian shares were subdued on Friday amid mixed global cues of stable oil prices and surging U.S. inflation, although the main indexes were set for their first weekly gain in five.
The blue-chip NSE Nifty 50 index was down 0.07% at 16,582.95 by 0500 GMT, and the S&P BSE Sensex fell 0.04% to 55,442.80.
“The market texture indicates a strong possibility of range-bound activity in the near future… so buying on the downside and selling on rallies,” said Shrikant Chouhan, head of equity research (retail), Kotak Securities.
Aiding the market were expectations of a fall in oil prices and the government having majority of votes in state elections, which offer stability for investment in emerging markets like India, Chouhan added.
Indian Prime Minister Narendra Modi’s party won the country’s most populous state with a big majority, according to the count on Thursday of a state assembly vote.
In global markets, oil prices stabilised and were on track for their biggest weekly drops since November after see-sawing on fears of escalating bans on Russian oil versus efforts to bring more supply to market from other major producers. [O/R]
Meanwhile, U.S. inflation hit a four-decade high, cementing expectations that the Federal Reserve would hike key interest rates at the conclusion of next week’s monetary policy meeting.
Among losers in the Nifty’s sub-indexes, the auto index and IT index fell 0.95% and 0.3%, respectively.
The Nifty’s metal index, bank index and the financial services index helped pare some losses, gaining over 0.2% each.
Looking ahead, investors will eye the country’s inflation data, due for release on Monday around 1200 GMT.
Economists in a Reuters poll said Indian retail inflation likely slipped marginally in February, thanks to lower food prices, but still warned that surging oil prices will push inflation much higher in the coming months.
(Reporting by Rama Venkat in Bengaluru; Editing by Subhranshu Sahu and Uttaresh.V)
