Oilco stocks take big hit

Tags: News
Equity markets came under selling pressure as the Iraq crisis deepened with the shutting down of its biggest refinery.

The benchmark Sensex erased its previous day’s gain closing 274.94 points down at 25,246.25. The broader Nifty closed 73.50 points down at 7,558.20.

Stocks of oil companies suffered major losses, as rising international crude futures put pressure on the rupee due to higher dollar demand from oil companies.

Weakness in Asian markets too added to the negative sentiment, with China’s Shanghai Composite index down 0.54 per cent, South Korea’s Kospi down 0.73 per cent and Hong Kong’s Hang Seng down by 0.09 per cent; only Japan’s Nikkei was up by 0.93 per cent.

Amar Ambani, head of research at IIFL said, “Oil prices hit multi-month high, as turbulence in Iraq deepens, raising concerns about disruption of supplies. With insurgents planning to move towards southern Iraq, the country’s daily oil output of 3.5 million barrels can be seriously hampered. Southern Iraq contributes 90 per cent of the country’s total oil output.”

Crude prices remained firm on the back of the Iraq crisis, with international crude oil (brent) quoting at $113.57 per barrel at 7 pm IST, showing a rise by 0.11 per cent.

In a very volatile session, institutional investors were net buyers of equities, but it was proprietary traders’ heavy selling that led to market’s negative close.

Foreign institutional investors were net buyers of equities worth Rs 366.18 crore, while domestic institutions were net buyers of equities worth Rs 318.15 crore.

As per Bombay Stock Exchange data, proprietary trades on the exchange accounted for Rs 57.29 crore of net selling.

Among the sectors, realty, oil & gas and power stocks were the biggest losers. BSE realty index closed 2.10 per cent down, followed by BSE power (1.59 per cent), BSE oil & gas (1.43 per cent). Only BSE healthcare index closed with a minor gain of 0.06 per cent.

On BSE, top losers included BHEL (2.66 per cent), TCS (2.31 per cent), NTPC (2.20 per cent), RIL (2.12 per cent) and ICICI Bank (1.98 per cent).

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