1. Sensex bounces back, gains 100 points as oil price weakens; Cipla, Axis Bank lead, Airtel dives 3%

Sensex bounces back, gains 100 points as oil price weakens; Cipla, Axis Bank lead, Airtel dives 3%

Indian stock markets opened marginally higher on Wednesday following a little softening in the crude oil prices and a continued optimism about the second-quarter corporate earnings.

By: | Updated: November 8, 2017 9:40 AM
Bombay Stock Exchange building. (Image: Wikimedia Commons)

Indian stock markets opened marginally higher on Wednesday following a little softening in the crude oil prices and a continued optimism about the second-quarter corporate earnings. BSE Sensex gained 46.59 points or 0.14% to open at  33,417.35 points while NSE Nifty added 11.8 points or 0.11% top begin at 10,361.95 points. But within minutes of trading, Sensex swung into red led by a sharp decline in Bharti Airtel shares followed by the weakening in RIL and ICICI Bank. Soon after it regained the momentum and bounced back driven by the upsurge in the shares of Axis Bank. The benchmark Sensex jumped 113.94 points to hit the day’s high of 33,484.7 points.

Shares of Axis Bank neared their 52-week high, rising as much as 3.96% to Rs 548, and were among the top gainers on Sensex. Other shares which also surged Cipla, Sun Pharma, Wipro, Dr Reddy’s and TCS, advanced up to 4%. Earlier yesterday, the sell-off with an intention to book profits amid the rising crude oil prices led Sensex and Nifty losing up to 1%. A huge drop was observed in the stocks of heavyweight companies such as Lupin, Cipla, Bharti Airtel, State Bank of India, RIL, Tata Motors and Sun Pharma.

Oil markets dipped on Wednesday as traders took profits after crude prices hit two-year highs, but markets remained well supported by expectations of strong Chinese demand and tightening supplies, Reuters reported. “Traders said the market was eyeing growing tensions in the Middle East with concern, keeping a cautious tone on trade,” Reuters said in a report. Brent futures, the international benchmark for oil prices, were at $63.61 per barrel at 0243 GMT, down 8 cents, or 0.1%, but still close to a nearly two-and-a-half year high of $64.65 a barrel reached earlier this week.

The Dow Jones Industrial Average make out a fourth consecutive record high close on Tuesday, while the S&P 500 ended marginally lower after a disappointing profit forecast from Priceline and a drop in financials, Reuters reported. The Dow Jones Industrial Average ended up 0.04% at 23,557.23 after spending most of the day in negative territory. The S&P 500 dipped 0.02% to 2,590.64. The Nasdaq Composite slipped 0.27% to 6,767.78.

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