Wrap-up| Stocks skid on rising oil

Wrap-up| Stocks skid on rising oil

New Delhi: It’s becoming a familiar tale. An oil producing city is bombed, crude jumped and equities sank. After cooling down for two days, Brent crude oil prices climbed on Thursday as supporters of Libyan ruler Gadaffi bombed Ras Lanuf. Brent crude prices climbed to $116 a barrel in Singapore trading.

Moody’s downgrading of Spain’s credit rating added to thhe general despondency.

SENSEX: 18,327 –0.77%

NIFTY: 5,495 –0.65%

NIKKEI: 10,434 –1.46%

DAX: 7,093 –0.54%

FTSE 100: 5,904 –0.55%

Metals and banking stocks led the fall. Investors sold these stocks on concerns that high interest rates and raising input costs will lower corporate profit growth. A note from JP Morgan Chase & Co cut earnings estimates for banks citing an expected weakening in credit growth.

BSE METAL: 15,666 –1.3%

BSE BANKEX: 12,313 –1.1%

The impending savings rate de-regulation is expected to intensify amongst banks and put pressure on their net interest margins.

ICICI BANK: RS 1,014 –1.8%

CANARA BANK: RS 610 –1.6%

YES BANK: RS 271 –1.6%

FEDERAL BANK: RS 373 –1.5%

Share of steel companies also lost ground on concerns that slowing economic growth will weaken demand.

JSW STEEL: RS 938 –2.9%

TATA STEEL: RS 596 –2.6%


However shares like Gokaldas Exports, Cadila Healthcare and Pantaloon retail ended the day with gains. Share of Gokaldas Exports rebounded as the company witnessed change in management. Cadila Healthcare on the other hand gained on news of the company’s JV receiving approval from the US FDA for the generic version a cancer drug.