OilPriceAPI’s feed showed Brent at $116.06 a barrel at 1:06 a.m. ET Friday (10:36 a.m. IST), as Indian stocks hovered near flat amid concerns about inflation and growth linked to higher oil prices.
At 1 a.m. ET (10:30 a.m. IST), The Economic Times put the Sensex near 74,100, down about 40 points, and the Nifty 50 near 22,915, down about 20 points. Eleven minutes later, Financial Express reported the Sensex at 74,168.30, up 17.26 points, and the Nifty at 22,939.95, up 3.20 points.
The Economic Times also reported the Nifty Smallcap 250 had fallen nearly 2% and the Nifty Midcap 100 was down 1%. Its count for the National Stock Exchange showed 2,398 declining shares, 790 advancing and 101 unchanged.
The Economic Times quoted V K Vijayakumar, chief investment strategist at Geojit Investments, attributing a small-cap selloff the previous week to forced sales of positions financed with borrowed money. He said domestic investors were buying growth stocks despite high valuations, while foreign institutional selling had eased but continued to weigh on the market.
The benchmarks had risen in the previous session. Financial Express reported the Sensex gained 1.24% to 74,151.04 on Oct. 29, while the Nifty 50 climbed 1.05% to 22,936.75.
Vijayakumar cited higher oil prices and reports of possible renewed U.S. strikes against Iran after the Nov. 3 election as reasons conditions were unfavorable for a rally, Financial Express reported. According to the Associated Press, two diplomats said U.S. officials had told allies in the region to prepare for another possible military operation against Iran. The news agency said the timing was unclear.
The U.S. Bureau of Economic Analysis (BEA) estimated third-quarter real gross domestic product growth at a 3.4% annual rate. Its September release said the personal consumption expenditures (PCE) price index was up 3.6% from a year earlier; the index for the third quarter rose at a 2.1% annual rate. The BEA’s next Personal Income and Outlays release, which includes the PCE index, is scheduled for Nov. 25 at 8:30 a.m. ET.
