by admin | May 25, 2021 | Economy, Markets, News
Mumbai : Profit booking, along with a slight rise in global crude oil prices and depreciation in the Indian rupee, pulled the key Indian equity indices lower on Wednesday after three consecutive days of gains.
Sector-wise, except for IT and FMCG stocks, all others witnessed heavy selling pressure led by auto, finance and banking counters.
Index-wise, the benchmark S&P BSE Sensex settled at 34,779.58 points, down 382.90 points or 1.09 per cent.
The NSE Nifty closed at 10,453.05 points, down 131.70 points, or 1.24 per cent.
The volatility during the trade session can be gauged by the 878.27 points swing in Sensex from an intra-day high of 35,605.43 points and a low of 34,727.16.
Vinod Nair, Head of Research, Geojit Financial Services said: “Market slid below 10,500 mark as rise in oil price and volatility in INR influenced investors to book profit.”
“Global market remain mixed ahead of the release of FOMC minutes later in the day to get cues about rate hike trajectory. Currently the market valuation has moderated to some extent and bond yield has reduced. However, the outcome of Q2 earnings will have a say on the market.”
According to Abhijeet Dey, Senior Fund Manager-Equities, BNP Paribas Mutual Fund: “Initial positive momentum gave way to heavy selling pressure as stock markets in India wiped off intra-day gains and plummeted into negative terrain.”
“Selling in auto and financial stocks put pressure on bourses. Meanwhile, US President Donald Trump continued his criticism of the Federal Reserve, calling it his biggest threat as it was raising rates too fast. Trump had previously said that the Fed has ‘gone crazy’ and attributed last week’s plunge on Wall Street to the US central bank.”
On Wednesday, the Indian rupee closed at 73.60, down 14 paise from its previous close of 73.46 per US dollar.
In addition, brent crude oil prices inched up to over $81.60 a barrel.
Provisional data with the exchanges showed that foreign institutional investors bought stocks worth Rs 140.02 crore, whereas domestic institutional investors sold scrip Rs 343.11 crore.
HDFC Securities’ Retail Research Head Deepak Jasani said: “Technically, with the Nifty correcting sharply, traders will need to watch if the index can now hold above the immediate supports of 10,410 points; else a further correction is likely.”
The top gainers in the Sensex were ITC, up 1.34 per cent at Rs 286.35; Coal India, up 1.28 per cent at Rs 280.05; Wipro up 1.20 per cent at Rs 324 ;Infosys up 1.16 per cent at Rs 704.50; and Hindustan Uniliver, up 1.08 per cent at Rs 1,561.05.
Major losers included Yes Bank, down 6.85 per cent at Rs 231.75; Adani Ports, down 5.41 per cent at Rs 315; Maruti Suzuki, down 3.79 per cent at Rs 6,878.70; Tata Motors, down 3.40 per cent at Rs179.20; and Tata Steel, down 3.39 per cent at Rs 554.65 per share.
—IANS
by admin | May 25, 2021 | Commodities, Commodities News, Economy, Markets, News
Mumbai : High global crude oil prices, along with continuous outflow of foreign funds pulled the Indian rupee to a fresh low on Thursday.
According to analysts, caution ahead of key macro-economic data, coupled with a rise in demand for US dollars also dragged the rupee lower.
“High crude oil prices and month-end demand for the US dollar have pulled the rupee lower,” Anand Rathi Shares and Stock Brokers research analyst Rushabh Maru told IANS.
Around 12.30 p.m. the Indian rupee was pegged at 70.75 after it touched 70.81-82 to a US dollar — the lowest ever mark — against the greenback.
It opened the day’s trade at the Inter-bank foreign exchange market at 70.58 to a US dollar and soon surpassed its record low of 70.65 to a greenback on Wednesday.
Apart from high crude oil, outflow of foreign funds from the Indian equity and bond markets has had an adverse impact on the rupee.
Investment-wise, provisional data with exchanges on Wednesday had shown that foreign institutional investors sold scrips worth Rs 1,415.87 crore whereas domestic institutional investors bought stocks worth Rs 1,114.36 crore.
Besides, caution prevailed ahead of the release of India’s GDP and fiscal deficit data. The key macro-economic data points will be released on Friday.
—IANS
by admin | May 25, 2021 | Commodities, Commodities News, Muslim World
Tehran : Iranian Petroleum Ministry has said that there has been no major change in Iran’s production and export of crude oil despite US sanction threats.
Iran has plans to counter US President Donald Trump’s threats to stop Iran’s oil sales, and “the plans are working successfully”, Press TV quoted Iran’s Petroleum Minister Bijan Namdar Zanganeh as saying on Sunday.
The Iranian minister also criticized Trump’s pressure on Saudi Arabia to increase its supplies and said such efforts would destabilize oil market, Xinhua news agency reported.
The governing principles in Organization of the Petroleum Exporting Countries (OPEC) would never allow such political pressures to change the directions of the market, he said.
Besides, the anti-Iran efforts by the US President are largely to blame for the high oil prices in international markets, he added.
On Saturday, Zanganeh accused Trump of “interfering” in OPEC affairs, saying that Trump’s order to oil producing countries to raise output “is very insulting to the people of these countries and would undermine their national sovereignty and destabilize the oil market.”
Iran’s petroleum minister said that “political issues should not interfere in the crude market, and supply and demand should determine the final oil price.”
“But some political measures and instabilities spark concerns in the oil market and increase its price, including Trump’s insulting order to some OPEC members,” Zanganeh said.
On June 30, Trump said Saudi Arabia had pledged to increase its oil output by 2 million barrels per day “to compensate for falling output in Venezuela and Iran.”
—IANS
by admin | May 25, 2021 | Business, Commodities, Commodities News, Economy, Markets, Medium Enterprise, News
New Delhi : Lower global crude oil cost, along with a strengthened rupee, pulled the prices of key transportation fuel — petrol and diesel — down by around nine paise in the four metro cities.
On Saturday, Brent crude oil prices slipped to around $76 per barrel from $77 a barrel as global supply concerns eased. A decline in global crude oil prices in turn lessen the cost of refined products like gasoline or petrol.
As per the country’s pricing mechanism, the domestic petrol prices are dependent on the international fuel price on a 15-day average.
Besides, the Indian rupee has strengthened.
On a weekly basis, it appreciated by 72 paise to close at 67.06 against the US dollar from its previous week’s close of 67.78 per greenback.
Consequently, in the national capital, petrol was sold at Rs 78.20 per litre, down from Rs 78.29 on Friday, data on the Indian Oil Corp’s website showed.
In Mumbai and Chennai, petrol prices were at Rs 86.01 and Rs 81.19 a litre, respectively, down nine paise from Friday’s levels.
In Kolkata, petrol price fell by eight paise to Rs 80.84 per litre.
Prices of the key transportation fuels have been cut marginally on a daily basis, under the dynamic pricing system since May 30, as global crude oil prices began to ease.
In tandem with petrol prices, diesel prices also witnessed a decline. In Delhi, Kolkata, Mumbai and Chennai, the fuel was sold at Rs 69.11, Rs 71.66, Rs 73.58 and Rs 72.97 per litre — all prices down nine paise from Friday’s levels.
The recent surge in prices of key transportation fuel was attributed to a rise in crude oil cost, which rose till last week, and the high excise duties levied on the fuel in the country.
—IANS
by admin | May 25, 2021 | Commodities, Commodities News, World
By Ovunc Kutlu,
New York: Crude oil prices posted their biggest weekly losses Friday in more than two years, after rising crude production and the number of oil rigs in the U.S. has brought back fears that crude supply would increase in the global market.
The international benchmark Brent crude lost 8.7 percent between Feb. 2 – Feb. 9, while the American benchmark West Texas Intermediate (WTI) fell 9.8 percent during that period.
This was the biggest percentage decline in a single week for oil prices since January 2016 when low global demand and the glut of oil supply pushed oil prices down.
During the week of Jan. 8 – Jan. 15, 2016, both the Brent crude and WTI dived below $30 a barrel — their lowest point in 13 years.
On Friday, both benchmarks posted a 3.4 percent daily loss, after the oil rig count in the U.S., which signals the short-term production change, showed a strong increase.
The oil rig count in the country rose by 26 this week, the strongest weekly gain in a year, oilfield service provider Baker Hughes data showed earlier.
With that result, the total number of oil rigs in the U.S. reached 791, the highest level since April 2015.
Production of crude oil in the U.S. also climbed to a record high level last week by reaching 10.25 million barrels per day (mbpd), according to the Energy Information Administration (EIA) data released on Wednesday, and surpassed the crude output of Saudi Arabia.
The EIA said Tuesday it projects the U.S.’ crude oil production to average 10.6 mbpd in 2018, and 11.2 mbpd in 2019, to surpass the world’s biggest crude producer Russia.
—IANS
