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).

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Winter rains that have destroyed rabi crops are bound to take their toll

    Farmers are distressed. Many of them are staring at bankruptcy and most remain unsure how they would feed themselves, their families and cattle.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Today's Columns

BK Chaturvedi

Size does not matter, efficiency does

On assumption of office, prime minister Modi had emphasised the ...

Zehra Naqvi

Don’t let society decide your life’s framework

Our lives are nothing but a series of relationships, and ...

Dharmendra Khandal

The gigantic tales of mother nature

In Namdapha tiger reserve, Arunachal Pradesh, our guide was looking ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture