Indian markets closed at different notes on Wednesday as the benchmark Sensex ended marginally higher while Nifty 50 settled down led by the slump in shares of major oil marketing companies. Shares of the IOC, BPCL, and HPCL tumbled on the news that government may ask the oil marketing companies to absorb further increase in global crude oil prices. BSE Sensex gained 0.09% to close at 32,186.41 points whereas the broader Nifty 50 lost 0.14% to end at 10,079.3 points.
Shares of Sun Pharma (up 4.02%), Reliance Industries (up 3.13%), Dr Reddy’s (up 2.09%), Lupin (up 1.1%), and Tata Motors (up 0.67%) were the top gainers on the 30-share barometer Sensex. Shares of heavyweight companies such as Reliance Industries, Sun Pharma, HDFC Bank contributed the most while ITC and HDFC capped the gains.
The stock of the nation’s largest company Indian Oil Corporation fell as much as 6.2% to the day’s low of Rs 408; shares of another state-run refiner Bharat Petroleum Corporation plunged 8.4% to the day’s low of Rs 489. Shares of Hindustan Petroleum Corporation lost 8% to the day’s low of Rs 443.7.
As the petrol and diesel prices have hit three-year highs in some cities, the government seems to have swung into action to protect the consumers from the rising fuel bills, possibly bringing back the ghosts of the era of regulation. Not only is the government assessing the trajectory of oil prices, it may ask the oil marketing companies to absorb further increase in global crude oil prices, news channels ET Now and CNBC TV18 reported on Wednesday citing unidentified government sources. The government is unlikely to pass further rise in fuel prices due to higher inflation, the reports added.
Idea shares surged 6.6% on Wednesday to hit Rs 83.95 on Wednesday afternoon on BSE after reports suggested that over four million shares of the mobile network company changed hands in three block deals on the exchanges. Investors were cautious after retail inflation rose to a five-month high in August and industrial production grew by 1.2% in July against 4.5% a year ago. Losses in BPCL, IOC, ITC Ltd, Indiabulls Housing and Eicher Motor dragged the index into the negative zone. Intra-day, the benchmark Sensex rallied about 190 points in initial trade on widespread gains.