Mumbai: The S&P BSE Oil & gas Index was the worst performing index in trade following sharp correction in rupee against the US dollar and reversal in global oil prices. The Indian rupee was at three-week low as it breached 61 per dollar mark following profit booking in the market.
The strengthening US dollar Index, which is at 14-month high on hopes of increase in US interest rates, is also hurting global currencies. The rupee has resistance at 61.20 per dollar mark, if this resistance gives away then the rupee may even slip to 61.80 per dollar,” said an analyst tracking the sector.
There are concerns that the US Federal Reserve may end its Quantitative Easing programme in October raise interest rates earlier than expected.
Meanwhile, the market is also awaiting the government’s decision on gas pricing issue. According to ET Now sources, a panel of Secretaries is still reviewing the gas pricing formula.
The panel is unlikely to submit report on gas pricing today as it is seeking 2-3 more meetings to finalise report. The oil prices too seem to have bottomed out and are likely to bounce back in the near to medium term, say analysts.
ONGC declined 0.92 per cent, RIL was 1.58 per cent lower, BPCL fell 2.04 per cent, IOC was down 1.53 per cent, HPCL slipped 1.57 per cent, Oil India fell 2.21 per cent and Cairn India was 2.76 per cent down.
Bureau Report
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