Wrap-up| Oil & gas stocks drag Indian markets

Wrap-up| Oil & gas stocks drag Indian markets

Mumbai: Selling in oil & gas stocks led to a weak closing in Indian markets. Rebounding crude prices and speculation that government might ask the state-owned upstream firms to increase their contribution to the fuel subsidy pool led to selling in oil & gas shares. Crude prices climbed more than $1 to $111 a barrel on an unexpected fall in US gasoline inventories.

Sensex: 18,086 –0.28%

Nifty: 5,420 –0.34%

Oil & gas and Anil Ambani group company shares led the losses among Nifty 50 shares. Reliance Infrastructure, Reliance Communications and Reliance Capital fell by more than 2% each after reports said that Ambani was looking to invest $5-10 billion in Indonesia. Read more...

Reliance Infrastructure: 560 –4.23%

Tata Motors: 1,148 –3.44%

BPCL: 624 –3.25%

Reliance Communications: 86 –3.20%

Healthcare, auto and real estate stocks also saw losses. Investors sold automobile stocks on concerns that high fuel prices and interest rates might slowdown vehicle sales.

BSE Oil & Gas: 9,185 –1.88%

BSE Healthcare: 6,108 –1.40%

BSE Auto: 8,970 –0.98%

BSE Realty: 2,120 –0.92%

Except Oil India and Cairn India, all stocks in the BSE Oil & Gas index closed the day with losses. With crude prices rebounding and government not showing urgency in rising diesel prices, shares of oil marketing companies declined the most.

HPCL: 358 –4.35%

Indian Oil Corporation: 321 –4.29%

BPCL: 623 –3.37%

Gail India: 423 –2.22%

Reliance Industries: 901 –2.10%

ONGC: 274 –1.24%

However, Bajaj Finserv moved up sharply on robust March-quarter results. The company on Tuesday reported a doubling of March quarter profits.

Bajaj Finserv: 520 +4.84%

Overall, 60% of the stocks on the BSE closed the day with losses.