Welcome to the world of oil at $80. Red flags are already going up. And stocks are finding it hard to digestCountry’s stock markets are open with red marks on the last trading day of the week. At 9.20 am, the Sensex was trading 122 points down at 35026, while the Nifty was down 28 points to 10653.
The Sensex, which had lost 239 points on Thursday, closed at 35,149.12 on Thursday due to the selling pressure in the ongoing political developments in Karnataka. Traders said that the rise in crude oil prices to 80 dollars per barrel, cool quarterly results of companies and the impact of the global trend on the global markets was influenced by the domestic markets.
Nifty ended below the crucial base of 10,700, which was acting as support for the last couple of days and acting as a point of polarity for bulls. The level is important as it may turn the table for bears in short term. The strategy for now after almost a month should be to sell on the rise since the data suggest the weakness may stay for a couple of days given the overall loss of breadth
In Karnataka, BJP Legislature Party leader BS Yeddyurappa took the oath of office on Thursday. Earlier, there were dramatic developments in the Supreme Court at night. The court however clarified that it is only an oath and the formation of the government will depend on its decision in this matter.
The BSE’s 30-share Sensex opened at 35,483.62 in early morning and rose to 35,510.01 points during the trade. However, after plunging to 35,087.82 points due to profit-booking, it finally closed at 35,149.12, showing a fall of 238.76 points.