Sensex, Nifty higher; IT auto stocks support, FMCG declines
1:25 pm Interview:The decision of the OPEC countries to cut output in an effort to reduce global glut has created ripples in the oil market. But, HPCL’s Chief, MK Surana believes oil prices will not rise substantially.
“There is a surplus overhang of petrol and diesel in the world market as far as the inventories are concerned. We believe crude prices will not substantially go higher,” said Surana in an interview to CNBC-TV18.
He pointed out the production in US has increased and there are additions from Libya and Nigeria.
There is surplus inventory which hasn’t been soaked up completely and Surana says the market is still oversupplied. “We believe that the crude prices will continue to hover between in USD 55-60 per barrel in near future.”
Also read – Here’s why N Chandrasekaran is bullish about TCS and IT sector
1:00 pm Market Check
Equity benchmarks as well as broader markets continued to hold positive momentum in afternoon trade, led by technology and auto stocks. FMCG and infra stocks were under pressure.
The 30-share BSE Sensex gained 97.39 points at 28252.95 and the 50-share NSE Nifty rose 34.40 points to 8759.10. About 1616 shares advanced against 978 declining shares on the BSE.
TCS shares gained 1.4 percent as the company will consider share buyback on February 20. Infosys rose 2.7 percent as hopes increased that the company would follow suit.
Tata Sons’ N Chandrasekaran says 2017 looks set to be a good year for the company, with strong demand keeping margins healthy.
The mega merger of SBI and its 5 subsidiaries received the cabinet nod. SBI says the merger process should be nearly completed in a month from the date of notification. The stocks gained 0.6 percent but off early highs.
Oil held steady today, supported by ongoing supply cuts led by producer group OPEC, while rising fuel inventories and crude production in the United States dragged on prices. Brent crude futures were trading at USD 55.69 per barrel, down just 0.11 percent from their last close.
Gold prices rose as the dollar drifted down from one-month highs hit in the previous session on upbeat US economic data.
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