Indian equities were mixed on Friday, with a decline in financials companies following the country’s central bank tightening regulations on consumer lending offsetting a rise in response to an improvement in the forecast for U.S. interest rates and a decline in oil prices.
Financial services, banks, and private banks all had losses of around 0.75%, while public sector banks saw a 2% decline.
The Reserve Bank of India (RBI) tightened regulations for credit cards and personal loans, raising worries about the sector’s lending growth and profitability. This has resulted in a decline in the most heavily weighted sub-index of the benchmark Nifty 50, the financials.
Among the top Nifty losers, State Bank of India, Axis Bank, and Bajaj Finance fell between 0.5% and 2.5%.
With the anticipation that the US Federal Reserve won’t raise rates again this cycle and the lowering of crude oil prices to a four-month low, all other key Nifty sectors also saw gains.
For countries like India that import the commodity, a decline in oil prices is advantageous. The stocks of Indian Oil Corp, Bharat Petroleum Corp Ltd, and Hindustan Petroleum Corp Ltd all increased by 1%.
“The overall sentiment in the market is positive, despite today’s slip caused by financials,” stated Arihant Capital Markets director Anita Gandhi.
Gandhi went on to say that the momentum may be increased by the resurgence of purchasing by foreign investors following a 15-session selling streak as well as the decline in crude oil prices.
With the information technology (IT) index up 5.45% and on course for its best week in 16 months, the Nifty 50 and Sensex have gained around 1.5% apiece for the week thus far.