INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Domestic indices sank further on Tuesday as crude oil remained a major worry for investors
Sensex slipped 80 points or 0.21 per cent to settle at 38,565 as banks and financial stocks reversed gains
NSE Nifty ended at 11,576, down 19 points or 0.16 per cent
India meets over 80 per cent of its oil demand through imports and rising prices is expected dent country's current account
deficit.
Volatility remained high as worries over spike in crude added to the elections and earnings uncertainty already prevailing in the
market.
"Elevated crude prices, depreciating rupee against dollar and election uncertainty kept domestic market volatility remained at
higher levels, indicating some sort of cautiousness
After rallying for almost 1.5 months, consolidation in near term is inevitable," Rajnath Yadav, senior Research Analyst - Research Desk,
Choice Broking said.
India VIX rose 2.30 per cent
Market at a glance:Nine out of 30 Sensex stocks ended higher with ONGC as the top performer
The stock gained 3.93 per cent
Maruti, on the other hand, shed the most at 3.60 per cent
YES Bank, IndusInd Bank, Tata Steel and Hero MotoCorp were among other stocks that witnessed some selling today.
In the Nifty50 pack, 22
stocks advanced while 28 declined
BSE Midcap (up 0.03 per cent) index ended mildly higher while BSE Smallcap (down 0.13 per cent) fell in line with Sensex.
With a decline of
1.38 per cent, telecom was the worst sectoral performer followed by auto that fell 1.32 per cent
12 of 19 sectors ended in the red today
BSE Energy gained the most today at 1.25 per cent
Factors:Oil continues to climbOil prices hit their highest since November after Washington announced all waivers on imports of
sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran and further tightening global supply
Despite the move, spare capacity from other suppliers such as Saudi Arabia might be able to ensure oil markets cope with a cut in Iranian
exports.
Brent crude futures were at $74.67 per barrel, up 63 cents or 0.85 percent from their last close, after hitting their highest level
since November at $74.70.
Rupee reverses gainsAfter opening mildly higher, the domestic currency reversed its gains against the US dollar to
hit intraday low of 69.83, down 6 paise
India meets over 80 per cent of its oil demand through imports
A rise in crude oil prices increases dollar demand, which then hurts the rupee-dollar exchange rate
A fall in the rupee lowers dollar returns for foreign investors, and thus makes India investment unattractive.