Indian equity markets traded marginally higher on Friday, August 21, as investors balanced positive domestic sentiment against concerns over elevated crude oil prices and persistent global economic uncertainty.
The benchmark indices opened on a cautious note after recovering from a prolonged losing streak in the previous session. The Nifty 50 and BSE Sensex edged higher, although gains remained limited as traders continued to monitor developments in global bond markets and geopolitical tensions.
The Nifty 50 was trading around 24,239, while the Sensex hovered near 77,560, with both indices showing only modest gains during early trading. The benchmarks had staged a strong recovery on Thursday, with the Nifty gaining 0.64 per cent and the Sensex rising 0.82 per cent.
Crude oil prices remained a key concern for Indian investors. Brent crude was trading above $93 a barrel amid continuing geopolitical tensions and disruptions affecting energy supplies. Higher oil prices could increase India's import bill and put additional pressure on inflation, corporate margins and the rupee.
The rupee remained relatively stable, supported in part by intervention from the Reserve Bank of India. However, traders remained cautious about the impact of expensive crude on India's external finances and currency.
Sectoral performance was mixed, with investors selectively buying stocks while remaining wary of global risks. Small-cap stocks showed some resilience, while IT shares faced pressure.
Market participants are expected to closely track crude prices, developments in the Middle East and global bond yields for further direction.