Indian equity benchmarks opened lower on Friday, November 13, as rising crude oil prices and accelerating retail inflation weighed on investor sentiment. The decline came despite continued foreign institutional investor buying in domestic equities.
According to Reuters, the Nifty 50 fell 0.35 per cent to 25,209.85 in early trade, while the Sensex declined 0.09 per cent to 81,833.78. All 16 major sectoral indices were in the red at the time covered by the report.
Why are markets under pressure?
Brent crude rose to around $95.50 per barrel from approximately $92 a day earlier, amid concerns over attacks on Saudi energy infrastructure and shipping disruptions in the Strait of Hormuz. Higher crude prices can increase India’s import bill and add pressure to domestic fuel and transport costs.
Investor sentiment was also affected by October retail inflation of 6.09 per cent, which moved above the Reserve Bank of India’s upper tolerance level of 6 per cent. Food inflation was reported at 8.94 per cent.
Foreign investors continue buying
Reuters reported that foreign investors were net buyers for a ninth consecutive session, purchasing ₹78.31 billion (about $832.71 million) of Indian equities on Thursday. November inflows had reached around $8 billion, the highest monthly total since December 2020, according to the report.
What investors should watch
Market participants will track crude oil movements, inflation data, foreign fund flows and global developments around the Strait of Hormuz. Early market levels can change through the trading session, so investors should check live exchange data before making decisions.
