Sensex falls over 300 points in volatile trade, Nifty gives up 11,6502 min read . Updated: 25 Apr 2019, 04:21 PM IST Staff Writer
- Maruti Suzuki, which reported a drop in Q4 profit, fell over 2%
- RIL shares, which earlier in the day hit a new high, could not sustain gains
Indian markets fell today amid volatile trade today, hurt by weak global sentiment and elevated oil prices. The Sensex fell 323 points to 38,730 while Nifty ended 0.72% lower at 11,641. "Markets turned volatile on the F&O expiry day and settled with a cut of over half a percent. The first half was positive, in continuation to the previous trading session but limited participation capped the upside. It momentum fizzled out in the latter half, with sharp decline in index majors," said Jayant Manglik, president of retail distribution at Religare Broking.
"This volatility indicates caution among the participants and it’s not going to subside soon. Mixed earnings announcements combined with weak global cues are currently weighing on the sentiment. Besides, the recent surge in the crude has further deteriorated the condition," he added.
Brent crude price today rose past the $75/barrel mark amid tighter US sanctions on Iran and producer club OPEC's continued curbs on supply. Oil prices have risen by almost 40% since January. The rupee today weakened past the 70/dollar, falling to 70.28 in late trade.
Analysts expect markets to remain volatile in the near term. "Overall, markets will be volatile as crude prices are at elevated levels and as the domestic elections line up," said Siddharth Sedani, equity advisory head at brokerage Anand Rathi.
Reliance Industries shares today hit a new high of ₹1410.90 but could not sustain gains. They ended over 1% lower at ₹1,372.95.
Maruti Suzuki India forecast a weak rate of growth for the current fiscal year amid an industry-wide weakening of demand, sending the carmaker's shares down over 2%. Its net profit for the March quarter dropped 4.6% to ₹1,795.6 crore.
Other auto firms also closed lower. Tata Motors, Eicher Motors, Mahindra & Mahindra, and Hero MotoCorp were among the top losers in the auto pack.
Other Asian and European markets fell today amid concerns over global growth. The MSCI world equity index, which tracks shares in 47 countries, fell 0.3%.
US officials say global oil market ready for end to Iran crude exports
US attempts to drive Iranian oil exports down to zero come against the backdrop of a global market that is sufficiently well supplied to avoid price disruptions, senior U.S. officials said on Thursday. "There's roughly a million barrels per day (bpd) of Iranian crude (exports) left, and there is plenty of supply in the market to ease that transition and maintain stable prices," said Brian Hook, U.S. Special Representative for Iran and Senior Policy Advisor to the Secretary of State, speaking in a call with reporters.
Reliance Industries hits record high
Shares of market heavyweight, RIL today rose nearly 1.5% to a new high of ₹1,410 in noon trade and is on track for third straight session of gains.
Yes Bank shares rise 3%
Yes Bank shares were up 3% in early trade. Mint, citing sources, today reported that Yes Bank new CEO Ravneet Gill is looking to replace the entire top management of the lender, including some of ousted founder Rana Kapoor’s trusted aides, to remedy corporate governance lapses, and lax risk management and credit disbursal policies that were pointed out by the central bank last year, directly aware of the development said. (Read: CEO Ravneet Gill planning to replace entire top management of Yes Bank)
Rupee weakens past 70-mark again vs US dollar
The Indian rupee on Thursday weakened past 70 mark again to hit a eight week low against the US dollar, tracking declines in other Asian currencies amid continued strength in the dollar. Last time, rupee went past the 70-mark was on 11 March.
Oil dips on soaring U.S. supply, but Iran sanctions still support crude
Oil prices dipped on Thursday as record U.S. output and rising crude stockpiles dampened the impact on markets of tighter U.S. sanctions on Iran and producer club OPEC's continued curbs on supply.
Brent crude futures were at $74.53 per barrel at 0241 GMT, down 4 cents from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $65.75 per barrel, down 14 cents, or 0.2 percent, from their previous settlement. (Reuters)
Markets may stay volatile ahead of F&O expiry; Maruti, Axis, Tata Steel in focus
After a strong rally in the last hour of trade yesterday, the markets may stay volatile on Thursday ahead of futures and options (F&O) expiry of April series. SGX Nifty is marginally down, suggesting a tepid start for Indian markets. Read more here.