 "Indian blue-chips slip on Middle-East conflict concerns, metals cap losses")
Indian shares closed marginally lower on Monday, tracking weaker global stocks as nervousness around the escalating conflict in the Middle East dampened risk appetite, while a rise in metals stocks capped losses.
The NSE Nifty 50 index settled 0.10% lower at 19,731.75, and the S&P BSE Sensex fell 0.17% to 66,166.93.
Eight of the 13 major sectoral indexes fell, with financials and banks down 0.06% and 0.14% respectively. India's top private lender HDFC Bank closed 0.40% lower ahead of its results.
Metals gained nearly 1%, after data showed recovery in exports and imports in world's top consumer China. JSW Steel, Tata Steel were among the top Nifty 50 gainers.
Meanwhile, the more domestically focussed small- and mid-caps outperformed the blue-chips, rising 0.37% and 0.21% respectively, helped by sustained retail inflows.
"While valuations in small- and mid-caps are stretched, their domestic focus lends them an advantage over large-caps," said Narendra Solanki, head of fundamental research - investment services at Anand Rathi Shares and Stock Brokers.
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Most global stocks fell as cautious markets watched for signs of escalation which could determine the financial fallout from the Israel-Hamas war.
Brent oil futures steadied above $90 a barrel on Monday after passing the threshold on Friday. Higher oil prices are a negative for net importers of the commodity, like India.
"The conflict in the Middle East has kept investors on tenterhooks," Solanki noted, and advised long-term investors to "utilise short-term corrections to hike allocations into domestically-oriented companies."
Among individual stocks, DMart operator Avenue Supermarts lost 1.8% after reporting a drop in September quarter profit.
Nestle, which hit a record high on Friday on a target price hike by Citi, witnessed a pullback, shedding 1.89% and was among the top Nifty 50 losers.
Newly-listed Jio Financial Services rose 0.30% ahead of its first quarterly results since debuting in August.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)