India’s Sensex Swings as Investors Weigh Outlook for Oil Price

Nov 13 2018, 4:23 AMNov 13 2018, 5:39 AMNovember 13 2018, 4:23 AMNovember 13 2018, 5:39 AM

(Bloomberg) -- India stocks fluctuated as investors weighed concerns that a plan by major oil producers to cut supply may fan the price of the nation’s biggest import even as the cost of crude declined.

The benchmark S&P BSE Sensex index was little changed at 34,808.70 as of 9:41 a.m. in Mumbai. HDFC Bank Ltd. and Hindustan Unilever Ltd. were among the biggest drags on the gauge. Stocks across Asia fell Tuesday following a decline in technology shares on Wall Street.

“Selling pressure remains high in India as oil producing countries’ reaction to crude prices remains in focus, while a pullback rally in stocks failed to carry through,” said Ritesh Ashar, chief strategy officer at Mumbai-based KIFS Trade Capital Pvt. “With Asian equities in a sell-off mode, profit booking may continue.”

While oil slumped into a bear market last week, investors are looking for signs whether producing countries will cut output in an effort to bolster prices, even as U.S. President Donald Trump criticized the plan. Markets are also likely to remain volatile as traders assessed the outcome of elections in five Indian states through the end of the year to gauge the nation’s mood ahead of a national ballot next year.

Of the 46 NSE Nifty 50 Index companies that have announced results so far, 25 have either met or exceeded profit estimates. Eleven of the 19 sub-indexes compiled by BSE Ltd. declined, led by a gauge of telecom companies. A measure of oil and gas companies advanced 1.1 percent after Brent prices dropped below $70 a barrel.