Mumbai (Maharashtra) [India], November 13 (ANI): The stock markets ended the week on a weak note on Friday, with the benchmark indices declining as rising crude oil prices revived concerns over inflation and the possibility of further interest rate hikes.

However, continued foreign investor inflows and strong corporate earnings provided some underlying support to the market.

The Nifty 50 index closed at 25,144.30, declining 155.05 points or 0.61 per cent, while the BSE Sensex closed at 81,592.45, falling 318.56 points or 0.39 per cent.

Vinod Nair, Head of Research, Geojit Investments, said, "The rate hike fear is set to test the market rally, as rising inflation concerns and the possibility of further monetary tightening weighed on investor sentiment. Domestic inflation breaching the RBI's upper tolerance limit has reinforced expectations of a prolonged restrictive interest-rate environment."

He further added, "Meanwhile, a rebound in crude oil prices and an uptick in both Indian and US bond yields indicate growing caution towards riskier assets, potentially limiting near-term market upside. However, strong domestic corporate earnings momentum and sustained FIl inflows could provide underlying support to equities, keeping the longer-term market outlook constructive despite near-term volatility."

The weakness was visible across the broader market, with almost all major indices ending in the red. On the NSE, the Nifty 100 declined by 0.7 per cent, while the Nifty Midcap 100 lost 0.3 per cent. The Nifty Smallcap 100 also fell by 0.19 per cent.

Sectoral indices also faced selling pressure. The Nifty Auto index declined by 1.03 per cent, while the Nifty FMCG index lost 0.19 per cent. The Nifty IT index fell by 0.7 per cent, and the Nifty Metal index declined by more than 1 per cent. The Nifty Private Bank index also lost 0.9 per cent, with almost all sectoral indices ending under pressure.

Crude oil prices rose marginally by 0.15 per cent to USD 96 per barrel at the time of reporting, adding to concerns over India's inflation and import bill.

In the commodities market, gold prices gained 0.34 per cent to Rs 1,36,683 per 10 grams for 24 karats, while silver prices declined marginally by 0.19 per cent to Rs 1,78,383 per kg at the time of reporting.

Rajeev Sharan, Head of Research, Brickwork Ratings, said, 'The rupee edged up 7 paise to 94.05 on Friday from Thursday's 94.12 close, though the tone turned cautious as the day wore on. Two things are pulling against the currency's recent strength. Brent has rebounded to around USD 95.50 after reported attacks on Saudi oil facilities and fading hopes of a US-Iran deal, reviving the import-bill worry that had just eased. And October inflation breached the RBI's 6 per cent ceiling at 6.09 per cent, raising the odds of a December rate move."

He added, "The near-term swing factor is oil: if Brent climbs back, the rupee's recovery stalls; if it resumes falling, 94 holds.'

Meanwhile, Asian markets ended with a mixed trend on Friday. Singapore's Straits Times declined by 0.91 per cent to 5,235, while Hong Kong's Hang Seng index fell by 1.81 per cent to close at 23,581. South Korea's KOSPI index declined by 0.99 per cent to 5,290. In contrast, Japan's Nikkei 225 index gained 0.44 per cent to close at 61,090, while Taiwan's weighted index rose by 1.34 per cent to close at 43,675. (ANI)