Indian stock markets ended lower on Thursday extending yesterday’s losses with key equity indices Sensex and Nifty finishing down more than 0.5% each after witnessing a crack in the late afternoon deals possibly on Brent Crude breaching the level of $80 per barrel. In the last half an hour, Brent crude topped a fresh 4-year high of $80.18 per barrel steering most of the emerging markets lower. The global investment bank Morgan Stanley raised its Brent crude price forecast to $90 per barrel by 2020 following the steady increase in demand.
“The weightage of HUL & ITC, which corrected in a large way, affected the fall in the Sensex, causing a drop of over 200 points during the last half hour of trade. In the Nifty, none of the large caps today were healthy. In terms of the Nifty constituents, Bajaj Finance and Bajaj FinServe were the top gainers purely because of their quarterly numbers, however they are not heavyweights. Major portion of the Nifty stocks corrected. RIL was in the negative since morning, IT stocks were flat. The entire equation of the market was not that strong. If we look at the trend of the past 16 months, the crude prices were already rising. People are just reacting to the news and booking profits,” Sacchitanand Uttekar, Assistant Vice-President, Research at Tradebulls told FE Online.
The prospects of a sharp drop in Iranian oil exports in the coming months due to renewed US sanctions following President Donald Trump’s decision to withdraw from an international nuclear deal with Tehran has lifted oil prices in recent weeks, Reuters said in a report.
BSE Sensex declined 238.76 points or 0.67% to conclude at 35,149.12 after plunging 300.06 points to a day’s bottom of 35,087.82 on Thursday. The 50-share barometer Nifty 50 shed 58.4 points or 0.54% to settle at 10,682.7 after hitting a day’s low of 10,664.5, down by 76.6 points.
Shares of Coal India, Sun Pharma, Tata Motors, Wipro, Bajaj Auto, ONGC emerged as the top gainers whereas shares of ITC, Bharti Airtel, HDFC, Tata Steel, Axis Bank, Adani Ports, Yes Bank, Reliance Industries, NTPC, Asian Paints, IndusInd Bank and Kotak Mahindra Bank were the major laggards among the BSE Sensex constituents on Thursday.
Shares of Anil Ambani group companies’ RCom, Reliance Naval and Engineering were the leaders of the day. The stock of Reliance Communications rallied more than 75% to a day’s high of Rs 17.7 before settling up 65% at Rs 17.4 while RNaval gained 34% to settle at Rs 17.1.
With inputs from Porisma P. Gogoi