Stock market extends winning steak; PSU bank at new high
Sensex closed 487 points, or 0.66%, higher at 74,339.44 while the Nifty closed the day with a gain of 168 points, or 0.75%, at 22,570.35 on the monthly F&O expiry day.
Petroleum Minister Dharmendra Pradhan said India is keeping a close watch on the developing geopolitical tension between US-Iran and its consequential impact on the oil prices and inflationary pressure.
India is one of the major consumers of crude oil in the world. It imports nearly 84% of its crude oil requirement. Therefore, any surge in global prices has a cascading impact on the country’s inflation.
While the government is keeping a close watch on the developing situation, it is also preparing itself to face any eventualities arising out of the crisis, the minister said during a Cabinet briefing held here on Wednesday.
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Further, Pradhan said that Foreign Ministry is in constant touch with countries in the region.
The geopolitical tensions pushed Brent prices to a high of $71.75 per barrel earlier in the day, it traded at over $68 per barrel mark.
In macroeconomic terms, a 10 per cent rise in crude oil prices has the potential to push retail inflation by up to 20 basis points, apart from impacting forex reserves, current account deficit and the rupee strength against the US dollar.
Currently, petrol prices in Delhi stood at Rs 75.74 per litre, while diesel costs Rs 68.79.
The tension in the middle-east also impacted the domestic stock markets. The BSE Sensex closed lower by 51.73 points to 40,817.74 points and NSE Nifty closed at 27.60 points down at 12,025.35.
Besides, gold rose at India’s largest futures market, Multi Commodity Exchange (MCX) at Rs 40,849 per 10 grams at 4.23 p.m.
(With input from agencies)
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