Home Economy Drop in crude oil prices pulls equity markets up

Drop in crude oil prices pulls equity markets up

By IANS,

Mumbai : Despite a shaky start, the Indian equities market ended the day Tuesday with a gain on the back of a sharp fall in crude oil prices and firm european markets. The S&P Nifty surged past the 4,500 mark in late trade.

Crude Futures hit a low of US$118 per barrel — the lowest level since May 5 this year.

Realty, banking, and auto stocks led the gaining rally on the domestic bourses.

The market started on a negative note and continued to trade with extreme volatility oscillating between positive and negative zones till afternoon and surged in the last hour of trade

Ashok Jainani, head of research, Khandwal Securities Limited, said: “Drastic drop in crude oil prices boosted the market sentiment in late trade which was subdued early in the day.”

There is an expectation in the market that with fall in crude oil prices, rising inflation will be reined and input prices will come down which will be good news for the corporate sector,” Jainani told IANS.

The 30-share benchmark of the Bombay Stock Exchange (BSE) sensitive index (Sensex) which opened at 14,562.68 points touched a high of 14,986.63 points before closing at 14,961.07 points. It went up by 383.20 points or 2.63 percent at the day’s close.

The National Stock Exchange (NSE) S&P Nifty, which opened at 4,395.80 points, closed at 4,502.85 points. It went up by 107.50 points or 2.45 percent.

The BSE Midcap index, which closed at 5,850.02 points, went up by 107.30 points or 1.87 percent.

BSE Smallcap index which closed at 7,194.90 points went up by 91.56 points or 1.29 percent.

The market breadth was positive. On BSE, 1779 shares advanced, 923 declined and 65 maintained status quo.

The top gainers of the day included ICICI bank at Rs.640.50 – up by 8.24 percent, DLF Ltd at Rs.513.80 – gained 7.66 percent and Maruti Suzuki at Rs.572.15 – increased by 7.38 percent.

The top losers of the day included Sterlite Industries at Rs.623.95 – lost 6.76 percent, Tata Steel at Rs.691.75 – lost 2.286 percent, Tata power Rs.1119.40 – declined by 1.61 percent.