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Saturday, November 27, 2021

India Stocks Review: Spike in crude price, US yield drag indices down

Informist, Tuesday, Sep 28, 2021

 

By Joe Milton

 

MUMBAI – Domestic headline indices snapped their three-day winning streak today, as a spike in the US 10-year Treasury yield and a rise in crude oil prices dented investor confidence. 

 

Prices of Brent Crude Oil on the Intercontinental Exchange jumped to over $80 per barrel today, and with the ongoing demand-supply mismatch, the oil prices are expected to rise further, which stoked concerns over inflation. 

 

By the end of 2021, analysts at Goldman Sachs expect the Brent Crude Oil prices to touch $90 per barrel as global supply remain below their consensus forecast. 

 

As oil prices rose, Indian rupee to depreciated to its one-month low of 74.07 against a dollar, which induced further selling pressure in the equity markets. 

 

However, shares of upstream oil companies gained today as higher oil prices would improve their profitability. Bharat Petroleum Corp, Oil and Natural Gas Corp, GAIL India, Indian Oil Corp, Hindustan Petroleum Corp and Oil India ended 1-6% higher. 

 

But, gains in the oil companies were completely offset by selling pressure witnessed in banks and information technology stocks. Investors booked profit in most technology companies as they have gained substantially in the last few weeks.

 

In addition to this, selling was exacerbated as investors shied away from growth stocks as the US 10-year Treasury yield spiked to 1.55% from 1.48% on Monday. 

 

The Nifty IT index was the worst hit among sectoral indices as it closed 2.2% lower at 35239.95 points. The index has shed nearly 6% in last two sessions. 

 

Apart from technology companies, shares of frontline banks came under pressure as the Nifty Bank index ended 0.6% lower at 37945 points. Overall, government-owned banks fared better as Nifty PSU Bank index ended 1.2% higher. 

 

Towards the end, buying interest was witnessed in bank stocks which helped the headline indices recoup some losses. The Nifty 50 index closed at 17748.60 points, down 0.6%, after touching the day’s low of 17576.10 points. 

 

Correspondingly, BSE-Sensex ended 0.7% lower at 59667.60 points, after touching an intraday low of 59045.53 points. 

 

Overall market breadth was negative today as more stocks declined in National Stock Exchange. The small-cap and mid-cap indices in the exchange closed 0.5-1% lower. 

 

On stock-specific front, Shares of Antony Waste Handling Cell plunged about 12% after multiple large deals representing over 20% stake in the company took place on the bourses.

 

Shares of Reliance Industries touched its record high and finally closed at 2,548.05 rupees, up nearly 1% as the company now offers 20% cashback on its popular pre-paid tariff plans, to gobble up more users. 

 

Among laggards in the Nifty 50 pack were shares of Bharti Airtel, Tech Mahindra, and Bajaj Finance as they ended 3.2-3.7% lower.

 

* Among Nifty 50 stocks, 18 rose and 32 fell 

* Among Sensex stocks, 10 rose and 20 fell

* On the NSE, 779 stocks rose, 1,180 fell and 83 were unchanged

* On the BSE, 1,502 stocks rose, 1,755 fell and 168 were unchanged

* Nifty Realty: Down 3.02%; Nifty Energy: Up 2.01%; Nifty Auto: Down 0.64%

—————————————————————————————–

BSE                                             National Stock Exchange
Sensex: 59667.60, down 410.28 pts (0.68%)           Nifty 50: 17748.60, down 106.50 pts (0.60%) 
—————————————————————————————–

S&P BSE Sensitive Index                          Nifty 50
Lifetime High: 60412.32 (Sep 27)                : Lifetime High: 17947.65 (Sep 24)
Record Close High: 60077.88 (Sep 27)            : Record Close High: 17855.10 (Sep 27)
2021 1st day close: 47868.98 (Jan 1)            : 2021 1st day close: 14018.5 (Jan 1)
2021 Closing High: 60077.88 (Sep 27)            : 2021 Closing High: 17855.10 (Sep 27) 
2021 Closing Low: 46285.77 (Jan 29)             : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 60412.32 (Sep 27)         : 2021 High (intraday): 17947.65 (Sep 24)
2021 Low (intraday): 46160.46 (Jan 29)          : 2021 Low (intraday): 13596.75 (Jan 29)

2020 Closing High: 47751.33 (Dec 31)            : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)             : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)         : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)          : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)         : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)          : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))         : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)           : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)         : 2017 High(intraday): 10515.10 (Dec 26)

End

 

Edited by Arshad Hussain

 

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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Source: Cogencis

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