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Market seen under pressure, Asian peers weak; oil prices jump

  • India’s economic growth is likely to range between 1.5% and 4% in FY21, the World Bank said on Sunday
  • Oil prices surged more than $1 a barrel on Monday after major producers finally agreed their biggest-ever output cut

Indian stock market on Monday is likely to be lower as investors may react to the extension of the 21-day lockdown in few states, including Maharashtra. SGX Nifty, which indicates the movement for Indian equities, suggests a negative opening.

Other Asian indices also traded in the red in early deals. Markets in Hong Kong and Australia are closed today for Easter Monday.

The Department for Promotion of Industry and Internal Trade (DPIIT) has asked the home ministry to allow more industries to operate with reasonable safeguards even if the government decides to extend the nationwide lockdown beyond 14 April.

India’s economic growth is likely to range between 1.5% and 4% in FY21, depending on the severity of the spread of the covid-19 pandemic and the duration of the ongoing nationwide lockdown, the World Bank said on Sunday.

Oil prices jumped more than $1 a barrel today after major producers finally agreed their biggest-ever output cut, but gains were capped amid concerns that it won't be enough to head off oversupply with the coronavirus pandemic hammering demand.

After four days of wrangling, the Organization of the Petroleum Exporting Countries (Opec), Russia and other producers, a group known as Opec+, agreed on Sunday to cut output by 9.7 million barrels per day (bpd) to support oil prices, sources said, representing around 10% of global supply.

Total global oil supply cuts could come to 20 million barrels per day, around 20% of global supply, Kuwait's oil minister said.

Brent crude LCOc1 futures rose $1.23, or 3.9%, to $32.71 a barrel by 0058 GMT after opening at a session high of $33.99. US West Texas Intermediate (WTI) crude CLc1 futures were up $1.39, or 6.1%, to $24.15 a barrel, after hitting a high of $24.74.

Leaders of the world's top three oil producers, Russian President Vladimir Putin, US President Donald Trump and Saudi Arabia's King Salman, all supported the Opec+ deal to cut global crude output, the Kremlin said on Sunday.

Saudi Arabia, Kuwait and the United Arab Emirates (UAE) volunteered to make cuts even deeper than those agreed, which would effectively bring the Opec+ supply down by 12.5 million bpd from current supply levels, the Saudi energy minister said.

Still, demand concerns capped oil price gains. Worldwide fuel consumption is down roughly 30% due to the pandemic caused by the novel coronavirus that has killed more than 100,000 people worldwide and kept businesses and governments on lockdown.

(Reuters contributed to the story.)

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