Nifty Halts 4-Day Gains As Oil Stocks Selloff
Nifty futures traded on Singapore Exchange was down 0.1 percent at 10,096
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Most Indian equity benchmarks declined as shares of oil marketers sold off on reports the government may ask these companies to absorb fuel price increase.
The S&P BSE Sensex was little changed at 32,186 while the NSE Nifty 50 Index fell 0.14 percent to 10,079. Bharat Petroleum Corporation Ltd., led the declines on the Nifty, falling 6.45 percent — the most in two years.
Sentiment was also soured after data released late Tuesday showed inflation accelerated to the fastest since March and exceeded expectations, diminishing hopes of an RBI interest rate cut.
The Nifty’s in a phase of consolidation and is likely to remain in it for the short-term, said Pushkar Kanetkar, assistant vice president (technical research) at GEPL Capital. “We are seeing profit booking at the 10,0130 levels, the record high of the index, which is also the big resistance right now,” he told BloombergQuint by phone.
Kanetkar advised against making any fresh investment at current levels. “One can buy if the Nifty drops to 9850 or thereabouts. But remain stock specific.” He recommended buying two auto stocks – Ashok Leyland and Motherson Sumi.
Oil Stocks Drag Nifty Lower
Oil stocks slide after media report suggests government may ask state oil PSUs to absorb fuel price increase.
- BPCL -6%
- HPCL -4.9%
- Indian Oil Corp. -4.2%