Indian Equities Slip on Crude Oil Price Hike and West Asia Tensions
Indian equities started the week on a cautious note due to rising crude oil prices and heightened tensions in West Asia. The BSE Sensex dipped by 107.38 points or 0.14 per cent, while the NSE Nifty 50 fell by 14.55 points or 0.06 per cent.
Brent crude surged past USD 97 after gaining around 10 per cent last week and reached USD 97.02, up 0.77 per cent. Crude oil prices rose to USD 92.27, a gain of 0.86 per cent over the previous day.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, stated that 'Brent is trading near USD 96.50 this morning after a rise of about 10% last week, and the weekend has added a new dimension to the conflict; it is now being fought at sea.'
Rajesh Palviya, Head of Research at Axis Direct, noted that the Nifty index struggled below the crucial 24,000-24,150 zone, which repeatedly capped upside. Immediate support for the index was placed at 23,800, followed by 23,700 and 23,600.
Vikram Kasat, Chief Business Officer, Advisory and Dealing at PL Capital, said that weak Wall Street cues, fear of rate hike in US, and uncertainty in Middle East may lead to some more consolidation in the stocks when markets open for trade on Monday.