Indian shares inched lower on Friday, pressured by heavyweight financials and rising oil prices as concerns over the reopening of the Strait of Hormuz persisted, while quarterly earnings drove stock-specific moves.
The Nifty (.NSEI) edged 0.09% lower to 24,614.95, while the BSE Sensex (.BSESN) was down 0.33% at 78,695.45 by 10:09 a.m. IST.
Six of the 16 major sectors logged losses. The broader small-caps (.NIFSMCP100) dipped 0.1%, while mid-caps (.NIFMDCP100) added 0.3%.
Bajaj Finance (BJFN.NS) fell 3.9% and its parent Bajaj Finserv (BJFS.NS) lost 3.3%, dragging the financials sub-index (.NIFTYFIN) 0.7% lower.
The losses came after a draft RBI proposal raised concerns over restrictions on certain revolving-credit products offered by non-bank lenders.
"We think flexi and overdraft loans by NBFCs operating in corporate, MSME and unsecured personal loan segments, are likely to be impacted," said analysts led by Subramanian Iyer of Morgan Stanley.
Brent crude futures rose for a third consecutive session, climbing above $84 a barrel on concerns over shipping through the Strait of Hormuz after Iran, working with Oman, proposed restrictions on vessels deemed hostile.
Higher oil prices are negative for India, which imports a bulk of its crude requirements.
"While bouts of profit-taking may emerge, markets remain on track for a second consecutive weekly gain," said Aishvarya Dadheech, founder and chief investment officer at Fident Asset Management.
"The underlying positivity for domestic equities should continue, supported by improving earnings outlook and renewed foreign inflows as the global AI-trade frenzy cools," Dadheech said.
So far this week, the Nifty and Sensex indexes have climbed 1% and 0.8%, respectively.
Conglomerate Britannia Industries (BRIT.NS) jumped 3.8% after posting a quarterly profit rise, with brokerages citing robust volume growth, rising market share and mid-teens revenue growth as positives.
Shares of Kalyan Jewellers (KALN.NS) climbed 3.7% after Jefferies initiated coverage with a "buy" and a Street-high price target of 830 rupees.
Hero MotoCorp (HROM.NS) rose 3.1% after posting a 29% growth in June-quarter profit.
