07.08.202604:34:04UTC+00Sensex Retreats as Financials Drag

India’s BSE Sensex slipped about 0.4% to 78,692 at the open on Friday, giving back gains from the previous two sessions as weakness in financial stocks and caution over rising crude prices and mounting Middle East tensions weighed on sentiment. Losses in financials more than offset support from steady foreign fund inflows.

Brent crude rose above $83 a barrel on fears of possible shipping disruptions in the Strait of Hormuz, stoking inflation concerns for the oil-importing economy. Financials were among the worst performers, led by Bajaj Finance (-3.9%), Bajaj Finserv (-3.2%), and Shriram Finance (-1.4%).

Despite the pullback, the benchmark index remained on course for a second consecutive weekly advance of around 0.8%, underpinned by continued buying from foreign institutional investors.

In corporate earnings, Britannia Industries declined after quarterly profit missed estimates amid higher fuel and shipping expenses, while Life Insurance Corporation reported a 23% year-on-year increase in quarterly profit, driven by improved margins.