Saudi Arabia's announcement that the Opec output cut could continue beyond June and even cover the whole year is likely to roil the market when traders return on Thursday after Maharashtra Day holiday on Wednesday. The global markets' response to the ongoing US-China trade talks, which US leaders described as in the final lap, along with oil price is likely to influence trading this shortened week.
On a volatile Tuesday, last-hour recovery saw Bombay Stock Exchange (BSE) Sensex crawl back above 39,000 points while National Stock Exchange (NSE) Nifty closed above 11,700 points. The dominating theme of uncertainty pushed the market sideways on Tuesday with Sensex closing at 39,031 points, down 35 points or 0.09 percent. Nifty closed at 11,748 points, down 6 points or 0.06 percent. While 25 scrips making up the 50-share Nifty advanced while 25 declined. Nifty May futures shed 0.21 percent to close at 11,789.
Brent Crude gained 1.3 percent on Monday to hit $72.47 per barrel and the market expectation is that there is more headroom for the commodity's further rise. Saudi Arabia has hinted at extending an output cut that began in January beyond the June window. The report also suggests the squeeze could continue for the whole of 2019, raising the prospect of a runaway increase in fuel prices in oil importing countries like India. According to a CNBC report, Saudi Arabian energy minister Khalid Al-Falih's statement showed that the Organization of Petroleum Exporting Countries (Opec) was resisting pressure from US President Donald Trump, who wanted to raise output to make up for the supply shortfall expected from tightening US sanctions against Iran.
The top gainers were JSW Steel that gained 5.41 percent to hit 309.90 and Zee Entertainment Enterprises Limited (ZEEL) that gained 4.06 percent to reach 434.65. The top losers were Yes Bank that tanked 29.7 percent to 166.75 and India Bull Housing that lost 6.4 percent to close at 691.20.
Most sectoral indices lost during the day, except for the gains that Nifty Media (1.41 percent), Nifty Metal (1.39 percent), Nifty IT (1.22 percent), and Nifty Fin Services (0.39 percent) made. The worst losers were Nifty PSU Bank (3.34 percent), Nifty Realty (2.31 percent), and Nifty Auto (1.69 percent). The results season has dragged on with many weak results cluttering the path of the market. Recovery at lower levels, however, suggests that bulls at still around.