Lower oil prices, rupee propel markets out of downtrend | WeForNews | Latest News, Blogs Lower oil prices, rupee propel markets out of downtrend – WeForNews | Latest News, Blogs
Connect with us

Business

Lower oil prices, rupee propel markets out of downtrend

The past week saw NSE Nifty50 fall to a six months’ low of 10,138 points led by outflows from debt and equity markets by foreign portfolio investors.

Published

on

Oil Price

Mumbai, Oct 13 : The Indian equity market came in for some rough weather due to global worries over high crude oil prices and US interest rates during the week just ended, but managed to catch the upside in the final session of trade.

However, the odds favoured a sixth week of decline, as the market swung widely with major losses of over 2 per cent in just one session — thereby pushing stock prices and the Indian currency down south.

The past week saw NSE Nifty50 fall to a six months’ low of 10,138 points led by outflows from debt and equity markets by foreign portfolio investors.

Currently, outflows have reached a worrying level. In just the nine trading sessions from October 1, foreign investors have sold stocks worth over Rs 17,000 crore. At this rate, the quantum might cross Rs 40,000 crore.

The worst month in over 10 years in this regard was January 2008 when the fund outflow crossed Rs 29,000 crore.

On a weekly basis, provisional figures from the stock exchanges showed that foreign institutional investors sold scrip worth Rs 8,335.12 crore, while the domestic institutional investors sold Rs 8,568.38 crore of stocks.

Notwithstanding the general downturn, the plunge in crude oil prices to around $80 per barrel saw a respite from the onslaught of negative sentiments. The downtrend in prices came after the US reported a sharp rise in its oil production.

Besides oil prices, attractive valuations and liquidity infusion by RBI lured domestic investors back to the Indian market.

In addition, the rupee’s recovery came in part as a result of lower oil prices and the central government’s decision to raise the import duty on selective telecom equipment smoothened investors’ nerves.

The rupee closed at 73.56 on Friday, strengthening by 21 paise from its previous week’s close of 73.77 per greenback.

Consequently, on a weekly basis, the S&P BSE Sensex closed at 34,733.58 points, up by 353.54 points or 1.02 per cent from its previous close.

Similarly, the wider Nifty50 of the National Stock Exchange made gains. It closed at 10,472.50 points, up 156.05 points or 1.51 per cent from the previous week’s close.

The market breadth on both NSE and BSE were positive in three out of the five trading sessions of the week.

“The market witnessed extreme volatility this week due to liquidity constraints, rising oil prices and depreciation in Indian rupee,” said Vinod Nair, Head Of Research at Geojit Financial Services.

“Negative sentiments over a slowing world economy due to the lingering trade war between the US and China and concerns over a Fed rate hike trajectory spooked global markets.”

Deepak Jasani, Head of Retail Research at HDFC Securities, said: “The top sectoral gainers for the on the BSE were media, energy, auto and power indices, as also the Bank Nifty. The top losers were IT and metal indices.”

The top weekly Sensex gainers were Yes Bank (up 19.64 per cent at Rs 246.70); Kotak Mahindra Bank(up 11.02 per cent at Rs 1,169.40); Reliance Industries (up 7.29 per cent at Rs 1,126.40); Adani Ports(up 7.08 per cent at Rs 323.45); and ONGC(up 6.98 per cent at Rs 157.20 per share).

The major losers were Tata Motors(down 15.31 per cent at Rs 183.40); Tata Motors(DVR)(down 13.88 per cent at 101.15 ); TCS(down 8.78 per cent at Rs 1,918.40); Vedanta(down 7.61 per cent at Rs 214.20); Infosys (down 5.93 per cent at Rs 679.05).

(Ravi Dutta Mishra and Rohit Vaid can be contacted at [email protected] and [email protected])

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

18 − 13 =

Business

Global markets under pressure over fear of coronavirus spread

Published

on

By

Stock Market Down

Mumbai, Jan 24 : Fears that the outbreak of coronavirus in China may disrupt economic activity and global growth has sent the stock markets tumbling.

Chinese health authorities on Friday said that 830 cases of pneumonia caused by coronavirus were confirmed in 29 provincial-level regions in the country. The pneumonia has so far claimed 25 lives.

A sharp adverse reaction from Asian, US and European markets was witnessed because China is entering one of its busiest travel periods on account of its Lunar New Year holiday. The virus outbreak could hurt demand.

On Thursday, Chinese stock markets logged its biggest slide in eight months. However, Indian markets closed higher as the oil prices plunged significantly. The global oil benchmark, Brent slipped to $62 a barrel as the virus outbreak in China may dent fuel demand.

Meanwhile official sources told IANS that though over 500 Indian students study in Wuhan city’s medical colleges and universities, most of them had left for home for the Chinese New Year holidays.

Deaths due to the virus have revived memories of the SARS epidemic, caused by a coronavirus, which killed nearly 800 people and infected more than 8,000 others across the world in 2002-2003.

Continue Reading

Business

SC stays NCLAT order on RoC plea for changes in Tata-Mistry verdict

Published

on

By

Cyrus Mistry

New Delhi, Jan 24 : In a major development in the Tata Sons-Cyrus Mistry row, the Supreme Court on Thursday stayed the National Company Law Appellate Tribunal’s (NCLAT) order dismissing the Registrar of Company’s (RoC) plea to modify its verdict on the Tata Sons matter.

Tata Sons had challenged in the apex court the NCLAT’s January 6 order on conversion of Tata Sons from a public to a private company.

Agreeing to hear the Tata Sons’ plea, the apex court on Friday issued a notice to the parties concerned. The three judge bench headed by Chief Justice S.A. Bobde will hear the matter along with the main plea filed by Tata Sons against NCLAT’s verdict.

The National Company Law Appellate Tribunal (NCLAT) had on January 6 rejected the plea by the RoC to modify the appellate tribunal’s judgement in the Tata-Mistry case.

The NCLAT had in its December 18 verdict termed the RoC’s decision to allow conversion of Tata Sons from a public to private company as illegal, while the RoC had filed a plea at the appellate tribunal to remove the word “illegal” from its verdict, among other observations.

The two-judge bench headed by NCLAT Chairman Justice S.J. Mukhopadhaya had observed that the judgment did not cast any aspersions on the RoC.

Posting the matter for hearing after four weeks, the Supreme Court had, on January 10, stayed the NCLAT order reinstating Cyrus Mistry as Tata Sons Chairman. Chief Justice S.A. Bobde said the NCLAT had granted a prayer not made.

However, Mistry has already made a statement that he is no longer interested in taking up the chairmanship of Tata Sons.

Continue Reading

Business

Swamy warns against Air India sale, wants House panel to vet his note

It has been reliably learnt that the Rajya Sabha member had expressed reservations over privatisation of Air India the meeting of a Parliamentary consultative committee earlier this month.

Published

on

By

Subramanian Swamy

New Delhi, Jan 23: The government’s plan to sell national carrier Air India may face political and legal headwinds with senior BJP leader Subramanian Swamy raising the red flag against the decision.

Days before the launch of bidding process by inviting Expressions of Interest (EoI) from potential suitors, Swamy has warned against such move, saying the issue was currently being discussed by a Parliamentary panel.

“Right now, it (Air India disinvestment) is before the consultative committee and I am a member of that. I have been asked to give a note which will be discussed in the next meeting. They can’t go ahead without that,” Swamy told IANS.

“If they do, I will go to court. They know that too,” he cautioned.

A vocal opponent of Air India privatisation, Swamy had earlier suggested to list 49 per cent of Air India shares on stock exchanges while government holds 51 per cent in the carrier as an alternative to selling its entire stake to private companies.

It has been reliably learnt that the Rajya Sabha member had expressed reservations over privatisation of Air India the meeting of a Parliamentary consultative committee earlier this month.

After its failed first attempt, the Modi government has shown great zeal this time to sell Air India. It is set to offer a sweetened deal to potential buyers this time around by removing a large chunk of the debt and liabilities from the airline books.

Aviation Minister Hardeep Singh Puri had earlier said that Air India will be shut down, in case the disinvestment exercise is not successful.

Sources told IANS that the preliminary information memorandum (PIM) inviting EoI has been tentatively scheduled to be unveiled on January 27.

Air India is proposed to be sold along with its subsidiary Air India Express and ground-handling joint venture company Air India Singapore Airport Terminal Services Ltd (AISATS) in which it has 50 per cent stake.

Air India on January 10 came out with tender for engaging aircraft asset management companies for carrying out technical audit of its entire fleet.

A Ministerial panel on Air India chaired by Home Minister Amit Shah on January 7 approved the draft EoI and a share purchase agreement (SPA) for the airline’s disinvestment.

(Nirbhay Kumar can be contacted at [email protected])

Continue Reading
Advertisement

Most Popular