Parliament logjam and dip in oil stocks subdue markets

Mumbai, Dec 8 (IANS) The prevailing logjam in parliament coupled with prospects of a US rate hike and the decline in oil and gas stocks subdued Indian equity markets, leading to a barometer index to provisionally close 253 points down on Tuesday.

Initially, both the bellwether indices of the Indian equity markets opened on a negative note following their Asian peers.

Besides, prospects of a US rate hike prompted a selling frenzy among foreign investors and continued weakness in rupee’s value depressed investors.

In addition, oil and gas, energy and power companies stocks fell after a dip in global crude oil prices.

The barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) provisionally shed 253 points or 1.00 percent during the day’s trade.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) closed in the red. It provisionally closed lower by 76.45 points or 0.98 percent at 7,688.95 points.

The Sensex of the S&P Bombay Stock Exchange (BSE), which opened at 25,488.42 points, provisionally closed at 25,277.23 points (at 3.30 p.m.) — down 252.88 points or 0.99 percent from the previous day’s close at 25,530.11 points.

The Sensex touched a high of 25,542.47 points and a low of 25,256.79 points during the intra-day trade.

Markets observers elaborated that the investors’ sentiments were subdued due to the logjam in parliament which has dimmed the prospects of the Goods and Services Tax (GST) bill getting passed during the winter session.

“The parliament’s logjam is a major dampener for the markets as it reduces the chances of the GST bill getting passed this session,” Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.

“The upcoming US rate hike, continued selling by the foreign investors in the Indian markets and the slump in oil prices which negatively impacted stock prices of oil and gas companies thinned investor participation,” he said.

Vaibhav Agrawal, vice president, research, Angel Broking, told IANS: “Markets ended in the red led by weak global cues on account of weak Chinese data and lower oil prices, aggravating the slowdown concerns.”

“Metals and upstream (oil) companies continue to drag the benchmark indices led by the commodity weakness.”

According to Nitasha Shankar, vice president for research with YES Securities, even the broader markets witnessed selling pressure with a weak market breadth favouring the bears.

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