Markets down; oil stocks gain

Mumbai: The main stock index falls 0.3%, while the broader 50-share NSE index loses 0.3%, tracking weaker Asian shares after the Federal Reserve disappointed some investors who had expected more aggressive action and after data showed a continued slowdown in China’s factory data.

Reliance Industries falls 3.1%, after partner Niko Resources sharply cut the reserves estimate at the KG D6 gas blocks.

Oil shares gain, helping cap further losses in indexes, after global crude prices hit 18-month lows. Bharat Petroleum Corporation rises 0.9%, Hindustan Petroleum Corporation gains 5.3%, while Indian Oil Corporation adds 4.3%.

Explorers ONGC and Oil India gain 1.3 and 1.1% respectively.

Both refiners and explorers in India tend to track movements in oil prices because the government caps prices of petrol products such as diesel, cooking gas and kerosene.

A fall in global crude price will help oil companies as they will be less dependant on government subsidies.