Sensex slips by 275 points as Iraq ultras attack oil refinery
20 Jun 2014 3:43 AM IST
In highly volatile trade on Wednesday, the benchmark S&P BSE Sensex washed out major part of overnight gains on across-the-board selling following rise in crude oil prices on heightening conditions in Iraq and closed down by 275 points at 25,246.25.
The market got a jolt when the news of militants attack on Iraq's main oil refinery early Wednesday morning and some tanks containing refined products caught fire filtered in. As a result, the Sensex plunged by over 400 points in mid-afternoon trade on Wednesday.
Increase in global crude oil prices added macroeconomic concerns over India that imports nearly 70 per cent of its oil requirements, which will stoke inflation and affect the current account deficit (CAD). Slow down in foreign funds inflow and sharp rise in the rupee value to a low of near 60.40 in mid-session deals also weighed on the market sentiment. In general, 11 out of 12 sectoral indices closed in the red between 0.72 per cent and 2.10 per cent with realty, oil & gas, power, consumer durable, banking, auto and IT taking the lead in the downslide while only healthcare index finished in the green. On Tuesday, it had shot up by 330.71 points or 1.31 per cent. The 50-issue CNX Nifty of the NSE also slumped by 73.50 points or 0.96 per cent to 7,558.20.
Asian stocks ended mixed as investors await the Federal Reserve monetary policy decision scheduled to be released later in the global day on Wednesday. Key benchmark indices in China, Hong Kong and South Korea fell by 0.09 per cent to 0.60 per cent while indices in Singapore, Taiwan and Japan rose by 0.09 per cent to 0.93 per cent.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services said,’ Today (Wednesday) we saw Indian equity markets opened slightly positive but as the day progressed it gave up all the gains & ended over one percent down, taking cues from the Iraq conflict. During the day, indices fell more than 1.5 per cent on concerns over the impact of higher oil prices as India imports 80 per cent of its oil requirements and higher oil prices will automatically elevate the inflation’.
` dips by 36p to 7-week low of 60.39 against $
Mumbai: After taking a relief for a day, the rupee continued its south-bound journey and closed down by 36 paise at 7-week low of 60.39 against the Greenback following heavy dollar demand from oil importers after militants attack Iraq's main oil refinery.
Sharp fall in local equities amid slow-down in capital inflows too has a negative impact on the rupee.
However, the dollar index was down by 0.08 per cent against its six major global rivals
ahead of outcome of Fed's policy meeting late on Wednesday.
In overseas market, benchmark crude oil for July delivery added 41 cents to $106.77 on New York Mercantile Exchange.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 60.28 and moved erratically in a wide range of 60.06 and 60.54 before settling at 60.39, a net fall of 36
paise or 0.60 per cent.
Pramit Brahmbhatt, Veracity Group CEO said, ‘Today (Wednesday) rupee lost more than half per cent during the day taking cues from local equities which closed weak on profit booking. Also the tensions in Iraq raised worries among the investors which strained local equities forcing rupee to depreciate. The trading range for the spot rupee is expected to be within 60.00 to 60.80.’
The market got a jolt when the news of militants attack on Iraq's main oil refinery early Wednesday morning and some tanks containing refined products caught fire filtered in. As a result, the Sensex plunged by over 400 points in mid-afternoon trade on Wednesday.
Increase in global crude oil prices added macroeconomic concerns over India that imports nearly 70 per cent of its oil requirements, which will stoke inflation and affect the current account deficit (CAD). Slow down in foreign funds inflow and sharp rise in the rupee value to a low of near 60.40 in mid-session deals also weighed on the market sentiment. In general, 11 out of 12 sectoral indices closed in the red between 0.72 per cent and 2.10 per cent with realty, oil & gas, power, consumer durable, banking, auto and IT taking the lead in the downslide while only healthcare index finished in the green. On Tuesday, it had shot up by 330.71 points or 1.31 per cent. The 50-issue CNX Nifty of the NSE also slumped by 73.50 points or 0.96 per cent to 7,558.20.
Asian stocks ended mixed as investors await the Federal Reserve monetary policy decision scheduled to be released later in the global day on Wednesday. Key benchmark indices in China, Hong Kong and South Korea fell by 0.09 per cent to 0.60 per cent while indices in Singapore, Taiwan and Japan rose by 0.09 per cent to 0.93 per cent.
Jignesh Chaudhary, Head Of Research, Veracity Broking Services said,’ Today (Wednesday) we saw Indian equity markets opened slightly positive but as the day progressed it gave up all the gains & ended over one percent down, taking cues from the Iraq conflict. During the day, indices fell more than 1.5 per cent on concerns over the impact of higher oil prices as India imports 80 per cent of its oil requirements and higher oil prices will automatically elevate the inflation’.
` dips by 36p to 7-week low of 60.39 against $
Mumbai: After taking a relief for a day, the rupee continued its south-bound journey and closed down by 36 paise at 7-week low of 60.39 against the Greenback following heavy dollar demand from oil importers after militants attack Iraq's main oil refinery.
Sharp fall in local equities amid slow-down in capital inflows too has a negative impact on the rupee.
However, the dollar index was down by 0.08 per cent against its six major global rivals
ahead of outcome of Fed's policy meeting late on Wednesday.
In overseas market, benchmark crude oil for July delivery added 41 cents to $106.77 on New York Mercantile Exchange.
At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced lower at 60.28 and moved erratically in a wide range of 60.06 and 60.54 before settling at 60.39, a net fall of 36
paise or 0.60 per cent.
Pramit Brahmbhatt, Veracity Group CEO said, ‘Today (Wednesday) rupee lost more than half per cent during the day taking cues from local equities which closed weak on profit booking. Also the tensions in Iraq raised worries among the investors which strained local equities forcing rupee to depreciate. The trading range for the spot rupee is expected to be within 60.00 to 60.80.’
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