The markets are expected to see a muted opening on Tuesday as trends on SGX Nifty indicate. Indian benchmark indices Sensex and Nifty saw 2019's sharpest decline yesterday. Investors will keenly watch out crude oil prices after it jumped around 3% the previous day to a near six-month high, on growing concern about tight global supplies after the United States announced a further clampdown on Iranian oil exports.
The US government said it would eliminate in May all waivers allowing eight economies to buy Iranian oil without facing US sanctions. Stocks on Wall Street hovered near break-even on Monday as the benchmark S&P 500 index was about 1% away from its record high hit in September, while the S&P energy index led gains on higher oil prices.
Asian shares were little changed on Tuesday, hovering not far from nine-month peaks hit last week, with concerns China may slow the pace of policy easing curbing the market’s enthusiasm.
Back home, oil marketing companies (OMCs) stocks will be in focus as crude oil prices jumped over 37% this year so far.
An increase in oil prices is likely to put pressure on India’s fiscal and current account and comes against the backdrop of the 2019 Lok Sabha elections, where Prime Minister Narendra Modi is seeking a second term.
India, which imports more than 80% of its oil requirements, will now need to come up with options that offer terms as attractive as those offered by the Persian Gulf nation.
Key companies which will declare March quarter results today are ACC, Indiabulls Real Estate, ICICI Securities, Sterlite Technologies and Tata Global Beverages.
Shares of Essel Propack Ltd are likely to react as Blackstone Group Lp, one of the world’s largest private equity firms, has agreed to buy a majority stake in the speciality packaging company for about $310 million. The New York-based PE firm has signed a definitive agreement with Essel Propack’s promoter, Ashok Goel, to buy a 51% stake at ₹134 a share.
(Reuters contributed to the story)