Equity market dodges oil bullet, surges on trade talks

Last Updated: Sun, Jan 13, 2019 14:07 hrs
A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport

Mumbai: Despite a rise in global crude oil prices and heavy outflow of foreign funds, the Indian equity market logged gains during the week ended on Friday, partly owing to an ease in liquidity and hopes of the US-China trade war being resolved.

According to market observers, initially, stock-specific buying on the back of expectation of healthy third quarter earning results led the market higher, but results from private banks and the IT sector disappointed.

Accordingly, the volatile week saw the Sensex gain 314.74 points or 0.88 per cent, and Nifty50 scale-up only 67.6 points or 0.63 per cent.

"Market started-off on a positive note on the back of easing liquidity situation, appreciation in INR and selective buying in FMCG, IT & Private banks on expectation of strong earnings," Geojit Financial Services Head of Research Vinod Nair said.

"However, investors turned cautious as private banks reported higher NPAs and margin disappointment from the IT sector. While a potential settlement of the trade dispute helped oil prices to re-test $60 in the last couple of days, leading to depreciation in the rupee."

Index-wise, the S&P BSE Sensex gained 314.74 points, or 0.88 per cent, to close at 36,009.84, whereas the 50-share Nifty of the NSE gained by 67.6 points, or 0.63 per cent, to settle at 10,794.95.

Globally, investors were upbeat as a resolution in the US-China trade tension seemed near. However, the talks which concluded this week failed to completely convince market participants.

"Investors are waiting for further guidance from the US-China trade negotiations. Meanwhile, China's economy is slowing and facing increasingly powerful headwinds. Crude oil prices rose sharply amid easing concerns about energy demand," SMC Investments & Advisors CMD D.K. Aggarwal told IANS.

Sunsequently, the rise in crude oil prices depreciated the India currency, which eneded the week lower against the US dollar. It weakened by 77 paise to 70.49 against the dollar from its previous week's close of 69.72.

"The rupee touched a strong point of 69.24 last week and started weakening thereafter in response to a 20 per cent expensive crude from lows of $50 to a barrel," Sajal Gupta, Edelweiss Securities' Head of Forex and Rates.

"The rupee has got concerns from rising crude and the risk of fiscal slippages in a poll bound nation... any breach above 70.60 levels can take it to 71.50 levels."

Besides, the Indian markets were dented by an outflow of foreign funds, as FIIs were net sellers to the tune of over Rs 500 crore as against domestic institutional investors, who bought over Rs 1,100 crore worth of stocks, provisional data on BSE showed.

"The market breadth was negative in four out of the five trading sessions of the week. The top sectoral gainers for the week were the FMCG, Pharma and IT indices. The top losers were the Metal, Media and Energy indices," Deepak Jasani of HDFC Securities said.

The top gainers on the BSE and the NSE were Axis Bank which gained 7.53 per cent and Tata Motors which was up 5.59 per cent. ITC inched up over 5 per cent while Tata Motors (DVR) and ICICI Bank gained in the range of 3 to 5 per cent.

In contrast, export-oriented Hero MotoCorp lost 3.08 per cent followed by Yes Bank, Tata Steel, Bajaj Finance and IndusInd Bank declining in the range of 2 to 3 per cent.

State Capitals (Applicable from 6:00 a.m. on 13-01-2019) Petrol Current Price(Per Lt) Petrol Previous Price(Per Lt) Change(Rs)
Petrol price in DelhiRs.69.26 Rs.69.07 0.19
Petrol price in KolkataRs.71.39 Rs.71.20 0.19
Petrol price in MumbaiRs.74.91 Rs.74.72 0.19
Petrol price in ChennaiRs.71.87 Rs.71.67 0.20
Petrol price in FaridabadRs.70.63 Rs.70.45 0.18
Petrol price in GurgaonRs.70.21 Rs.70.27 -0.06
Petrol price in NoidaRs.69.24 Rs.69.22 0.02
Petrol price in GhaziabadRs.69.23 Rs.69.11 0.12
Petrol price in AgartalaRs.69.22 Rs.69.20 0.02
Petrol price in AizwalRs.66.85 Rs.66.15 0.70
Petrol price in AmbalaRs.70.03 Rs.69.95 0.08
Petrol price in BangaloreRs.71.53 Rs.71.34 0.19
Petrol price in BhopalRs.72.11 Rs.72.10 0.01
Petrol price in BhubhaneswarRs.68.28 Rs.68.20 0.08
Petrol price in ChandigarhRs.65.50 Rs.65.32 0.18
Petrol price in DehradunRs.69.75 Rs.69.46 0.29
Petrol price in GandhinagarRs.66.96 Rs.66.92 0.04
Petrol price in GangtokRs.72.65 Rs.72.50 0.15
Petrol price in GuwahatiRs.68.68 Rs.68.64 0.04
Petrol price in HyderabadRs.73.47 Rs.73.27 0.20
Petrol price in ImphalRs.59.18 Rs.65.43 -6.25
Petrol price in ItanagarRs.63.47 Rs.63.09 0.38
Petrol price in JaipurRs.70.03 Rs.69.72 0.31
Petrol price in JammuRs.70.77 Rs.70.58 0.19
Petrol price in JalandharRs.74.25 Rs.74.06 0.19
Petrol price in KohimaRs.67.89 Rs.67.71 0.18
Petrol price in LucknowRs.69.20 Rs.69.09 0.11
Petrol price in PanjimRs.61.94 Rs.61.77 0.17
Petrol price in PatnaRs.73.40 Rs.73.22 0.18
Petrol price in Port BlairRs.59.99 Rs.59.83 0.16
Petrol price in RaipurRs.67.69 Rs.67.71 -0.02
Petrol price in RanchiRs.68.33 Rs.68.37 -0.04
Petrol price in ShillongRs.66.54 Rs.66.55 -0.01
Petrol price in ShimlaRs.69.01 Rs.68.42 0.59
Petrol price in SrinagarRs.73.80 Rs.73.62 0.18
Petrol price in TrivandrumRs.72.29 Rs.71.96 0.33
Petrol price in SilvassaRs.67.58 Rs.67.56 0.02
Petrol price in DamanRs.67.60 Rs.67.47 0.13
Petrol price in PondicherryRs.68.60 Rs.68.33 0.27