OMCs Drop On Being Asked To Absorb Price Hike
Shares of oil marketing companies slumped after Finance Minister Arun Jaitley announced to cut fuel price by Rs 2.5 per litre. Government has cut excise on petrol and diesel by Rs 1.5 litre.
Oil marketing companies have been asked to bear remaining burden of Re 1 per litre.
Indian Oil slumped 18.24 percent
BPCL tumbles 19 percent
HPCL drops 22 percent
Government To Cut Petrol, Diesel Price By Rs 2.50/Litre: Arun Jaitley
Finance Minister Arun Jaitley is briefing media on rising oil prices.
Key highlights of the briefing:
Fuel relief steps to widen fiscal gap by 0.05 percent of GDP
Fuel retailers healthy enough to absorb relief steps
Not going back on fuel price deregulation
Diesel and petrol prices to be cut by Rs 2.5 per litre
Centre to cut excise duty on petrol and diesel by Rs 1.5/litre and OMCs will absorb burden of 1 rupee per litre
Brent oil crossed $86/barrel, highest in last four years
Interest rates in U.S. have increased to 3.2 percent, the highest since 2011
Both these developments have led to a situation which has had significant impact on the markets
Many steps have been taken by the government, borrowing has been cut by Rs 70,000 crore and allowed OMCs to raise $10 billion
Jet Airways Advances Most In Over Three Years
Shares of the Mumbai-based airline operator rose as much as 15.18 percent, the most in over three years, to Rs 204.10 on heavy volumes. Trading volume was 1.5 times its 20-day average.
Market Check: Sensex Drops 900 Points, Nifty Drops Nearly 10% From August Peak
Indian equity benchmarks extended decline as bluechip stocks like Reliance Industries, HDFC Bank, TCS, Infosys and Kotak Mahindra Bank came under heavy selling pressure.
The S&P BSE Sensex slumped 2.54 percent or 912 points to 35,063 and the Nifty 50 Index plunged 2.65 percent or 288 points to 10,570.
With today’s fall, the Nifty has almost wiped out entire gain of the current calendar year as it has corrected 9.3 percent from the record high on Aug. 28.
For the year, Nifty is just up 0.6 percent with stocks like Tata Motors, Bharti Airtel and HPCL down over 40 percent.
ICICI Bank Recovers After Chanda Kochhar Steps Down As MD & CEO
Chanda Kochhar has sought for an early retirement from ICICI Bank’s board of directors and as the MD and CEO, ICICI Bank said in an exchange filing. The bank has accepted her request for an early retirement and named Sandeep Bakshi as the new MD and CEO. Shares of the ICICI Bank reversed losses and rose as much as 5.78 percent to Rs 321.25.
Eicher Motors Falls Over 25% In 10 Trading Sessions
Shares of the Royal Enfield maker has fallen as much as 28 percent to Rs 21,329 in the last 10 trading sessions. In today’s session alone, the stock fell as much 8.84 percent.
Current Selloff Provides ‘Tremendous’ Buying Opportunities In Small And Mid Caps: Shyam Sekhar
The current selloff in equity markets provide a ‘tremendous’ buying opportunity in several mid and small cap companies, Shyam Shekhar, chief ideator & founder of ithought told BloombergQuint.
I think the markets are throwing up tremendous buying opportunities in several companies in small and mid cap space which have clear earnings visibility. Some of these companies further benefit from a weaker rupee. It may be a good time to switch focus into these companies and scale up positions in high conviction ideas among them, Shekhar said.