Effect Of Rising Oil Price On Stock Market

As oil prices continue to rise, stock markets across the world are finding it difficult to find any support. The recent fall in Indian market has been very quick. Market experts were expecting technical bounce, but the markets lost further ground.

On 9th june(today), Stock markets opened lower and BSE benchmark Sensex dropped below 15,000. Real Estate, Banking and Metal stocks were among worst hit. Real estate major DLF touched its lifetime low in today’s trading session. At 1.30 pm, BSE Sensex was down by 519 points at 15,053.

ITC, RCom, Reliance Industries, L&T and ONGC were among major losers. Tata Motors, Tata Steel and TCS were trading lower compared to Friday’s close. ICICI Bank, HDFC Bank, HDFC and SBI were trading much lower compared to earlier close.

Ranbaxy Labs was the only stock among heavyweights trading in positive zone. Technology stocks were trading marginally lower.

Global markets are also weak due to slowdown in economic growth and higher oil prices. US unemployment data hit investor sentiment and Dow Jones closed lower last week.

One Comment

  1. Posted June 10, 2008 at 4:06 am | Permalink

    For all the talk about a slowdown in the economy, real estate prices in most parts of the country have not corrected as much as most prospective buyers would have liked them to. But, shares of most real estate companies are not finding any takers even after falling nearly 50% from their record highs in January this year. This would suggest that the ongoing sell-off in real estate stocks is a good opportunity for bargain hunting. Yet, most brokerage houses are advising their clients against doing so, as they foresee testing times for the sector in the near term. In fact, many of them are recommending that existing investors cut their losses right away as they could be in for a long wait for share prices to come anywhere near their lofty highs.T he sharp rise in real estate prices, coupled with high borrowing costs has let to softening of demand. The slump in the stock market, too, has contributed to the trend as many investors were earlier routing their gains in share trading into real estate.Industry experts feel that companies that have managed to buy land in Mumbai at reasonable rates could be good bets even in these turbulent times. With outlook on the market as a whole being bearish, brokers expect realty stocks to slip further.Most property developers in India were riding the wave of an unprecedented demand due to a combination of rising affluence, tax benefits for home owners and low interest rates. But, this fuelled speculative buying in the sector, causing property prices to soar to exorbitant levels.For more view- realtydigest.blogspot.com

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