Sensex ends below 30,000 as oil, metals lose shine | business-news | Hindustan Times
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Sensex ends below 30,000 as oil, metals lose shine

Oil plunged to five-month lows on Thursday amid record trading volume in Brent crude, as OPEC and other producers appeared to rule out deeper supply cuts to reduce the world’s persistent glut of crude.

business Updated: May 05, 2017 16:32 IST
Raj Kumar Ray
(Reuters photo)

India’s shares slipped into the red on Friday with the Sensex falling below the 30,000-mark, as investors booked profits and commodity stocks fell on fears of a gloomy growth prospects in the United States and China.

The Sensex dropped 267 points, or 0.9%, to closed at 29,858.80 as investors booked profits after a strong rally on Thursday.

Besides, a weak trend in global markets as investors await the US non-farm payrolls data and drop in commodity prices overnight also influenced sentiment.

Sectoral indices led by metal, capital goods, FMCG, IT, tech, auto, power and realty were trading in the negative zone, fell as investors were wary of the global outlook.

The NSE Nifty was down 0.8% at 9,285.30.

Banking stocks were seen carrying forward the positive sentiment arising out of the government’s decision to bring an Ordinance to give greater powers to the Reserve Bank of India to tackle the menace of mounting bad loans.

In the banking segment, shares of SBI, ICICI Bank, Bank of Baroda, Punjab National Bank, Federal Bank and Kotak Bank were trading higher by up to 3.8%.

Brokers said apart from weak global cues, investors booked profit after recent gains, pushing the indices down.

Among Asian markets, Hong Kong’s Hang Seng was down 0.9%, while Shanghai’s Composite Index fell 0.7% in their early deals. Financial markets in Japan and South Korea are shut today for a public holiday.

The Dow Jones Industrial Average ended 0.03% lower in yesterday’s trade amid mixed earnings.

Commodity rally over?

Hong Kong led regional losers with losses of 0.8% in opening trades. Australian shares fell 0.5% with metals and mining related stocks leading the decline.

In Australia, big miners Rio Tinto Ltd, BHP Billiton Ltd and Fortescue Metals Group Ltd lost as much as 3%.

On Friday, Chinese iron ore futures fell nearly 7% in opening trades after tumbling 8% on Thursday on concerns that global commodity demand may fall sharply in the face of record supplies.

Copper held near four-month lows, following its biggest one-day drop in 20 months on Thursday and analysts predicted further weakness. Three-month copper on the London Metal Exchange gained 0.3% to $5,555 a tonne.

Oil plunged to five-month lows on Thursday amid record trading volume in Brent crude, as OPEC and other producers appeared to rule out deeper supply cuts to reduce the world’s persistent glut of crude.

(With agency inputs)