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Tensions in Persian Gulf, rise in oil prices dent equities

Tensions in Persian Gulf, rise in oil prices dent equities

Mumbai, June 14 (IANS) Rising geo-political tensions in the Persian Gulf region along with concerns over a slowdown in global economic growth subdued Indian equity markets on Friday.

Market observers, pointed out that premium valuation and rise in crude oil prices to over $61 per barrel also dented investors' sentiments.

Sectorally, BSE capital goods index ended in the green, whereas BSE realty, telecom, bankex and auto indices ended in the red.

 

Accordingly, the S&P BSE Sensex closed 289.29 points or 0.73 per cent lower at 39,452.07, and the NSE Nifty50 was down 90.75 points or 0.76 per cent at 11,823.30.

"World stocks struggled and safe haven bets were back in play on Friday with German bond yields plumbing record lows as Chinese data (May industrial output slowed to a more than 17 year-low) rekindled woes about the health of the global economy and fears of a new US-Iran confrontation intensified," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Gold prices hit a 14-month high."

According to Geojit Financial Services Head of Research Vinod Nair said: "Ripple effect from a weak global market while premium valuation and slow economy is hurting the market."

"Continuous exchange of words between US and Tehran regarding the oil tanker attack, progress of US-China trade-war, Fed policy outcome on June 19 and progress of monsoon will be closely watched by the investors. The market is cautious today awaiting these important events while companies highly leveraged are being mostly impacted."

In terms of investments, while the foreign institutional investors (FIIs) bought stocks worth Rs 172.35 crore, domestic institutional investors (DIIs) sold Rs 444.87 crore stocks.

On the currency front, the Indian rupee weakened 30 paise to 69.81 against the US dollar from its previous close of 69.51.

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Tensions in Persian Gulf, rise in oil prices dent equities

About Gopi Adusumilli

Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc. He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources. When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any. He can be reached at gopi@socialnews.xyz

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