BENGALURU, Oct 5 (Businesshala) – Indian stocks turned little after a fall on Tuesday, as gains in energy and metals stocks led losses in tech and pharma, with investors weighing on rising oil prices to keep the market volatile. Global concerns were expected.
The NSE Nifty 50 index was down 0.02% at 17.688.6, while the S&P BSE Sensex was down 0.1% at 59,240.3 by 0506 GMT.
Energy stocks rose 1.93%, led by Indian oil and gas explorer Oil & Natural Gas Corp, rising as much as 8.2% – its highest since July 2019.
Oil prices rose to their highest level in at least three years, extending gains from the previous session, after the world’s major producers decided to place caps on crude oil supplies.
While higher oil prices are expected to add to inflationary pressures, crude oil producers like ONGC will benefit.
Sumit Pokharna, VP Research, Kotak Securities said, “Crude oil prices are likely to remain high and ONGC’s margins are improving due to the recent hike in domestic prices. He said the sector was relatively underperforming and Tuesday’s rally was a catch.
Nifty’s IT and Pharma indices fell 0.86%, becoming the biggest loser among the major sub-indexes.
IT losses were led by Tech Mahindra, HCL and Mindtree, which were down between 1.06% and 1.7% ahead of the September-quarter earnings season.
Separately, a Businesshala poll of economists expects inflation to catch up or accelerate, risking further delay in India’s economic recovery. Price pressure has increased due to rising fuel prices, but the Reserve Bank of India is not expected to raise interest rates till April-June 2022.
Asian stocks took heavy losses early on Tuesday after a broad sell-off on Wall Street, as investors worried about inflation due to supply chain disruptions and rising energy prices.