BackWrap-up| Falling crude prices end local stocks’ losing streak
Wrap-up| Falling crude prices end local stocks’ losing streak
Premium
New Delhi: The sharp drop in world commodity prices helped Indian stock markets end a nine-day losing streak on Friday. Commodities, led by energy and base metals, have corrected sharply in the international markets on concerns about the sustainability of the economic recovery in the West. Brent crude prices fell by more than 10% to around $108 a barrel.
The prospects of low commodity prices and their cooling influence on inflation have revived investor sentiment in Indian stocks.
Sensex: 18,518 +1.69%
Nifty: 5,551 +1.68%
Banking and automobile stocks led the gains among Nifty-50 shares. Rate sensitive stocks gained on expectations that falling commodity prices might cool inflation. Lower inflation can help the central bank take a less aggressive monetary policy stance. Stocks of Sesa Goa and Cairn India, on the other hand, slumped on falling commodity prices.
Tata Motors: ₹ 1,196 +5.18%
ICICI Bank: ₹ 1,079 +4.80%
Hero Honda: ₹ 1,767 +4.10%
Sesa Goa: ₹ 290 –2.63%
Cairn India: ₹ 338 –2.28%
All sectoral indices closed with gains on the BSE. Banking, automobile and information technology indices led the gains.
BSE Bankex: 12,670 +3.71%
BSE Auto: 9,218 +3.13%
BSE IT: 6,056 +1.84%
Shares of Union Bank surged 10% on bargain hunting and benign fourth quarter results. Bank of India, Yes Bank and IndusInd Bank also registered gains of over 5% each.
Union Bank: ₹ 319 +10.00%
IndusInd Bank: ₹ 250 +6.47%
Yes Bank: ₹ 300 +5.33%
Bank of India: ₹ 421 +5.29%
However, shares of SKS Microfinance fell by close to 20%. Investors sold SKS Microfinance shares on concerns that the company might report weak fourth quarter results. According to Reuters, JPMorgan cut its share price target by more than half, citing a weakening business model.
SKS Microfinance: ₹ 330 –19.99%
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
