X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Good start to Samvat 2058 - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Nov 17, 2001

    Good start to Samvat 2058

    Despite the shortened trading week equity markets rallied handsomely marking a good start to the traditional new year. Confidence of domestic investors was further supported by a shift to equities in the global markets. The Sensex, NASDAQ and Nikkei all rose by more than 3% this week.

    A breather to the global economy is the steady decline in oil prices since the September 11 incidents. The initial knee-jerk reaction led to prices climbing to 9 month highs of $31 / barrel. But since then prices have moved in only one direction -- down. Crude oil prices (Brent blend) are trading at $17.5 / barrel, touching two year lows.

    Oil prices have now traded below the Organisation of Petroleum exporting Countries (OPEC) preferred price band of $22 - $28 / barrel for more than a month. The cartel had designed a mechanism for regulating oil prices. Should prices trade below $22 / barrel for ten consecutive working days the OPEC would adjust production to bring back prices within the preferred band. However, the cartel could not immediately cut production due to retaliatory action against the terrorist attacks. Also, Saudi Arabia, the largest crude producer in the world and member of the cartel, is a close ally of U.S.

    A new twist to oil dynamics is the role played by non-OPEC producers. OPEC has cut 3.5 m barrels/day (mbd) this calendar year. Much of the reduced supply has been compensated with increased production from non-OPEC producers especially, Russia. Consequently, the cartel has lost marketshare. Fear, that another cut would further reduce marketshare and non-OPEC producers capitalising on the cartel's effort to push-up prices has made the OPEC wary of an independent cut in production. Consequently, the OPEC has been bargaining for a joint production cut. The cartel is contemplating curtailing production by 1.5-2 mbd with support from non-OPEC countries to the extent of 500,000 bpd. However, the negotiations have not met with much success leading to weakness in oil markets. Reports that the OPEC may adopt a strategy of choking non-OPEC producers indicates that oil prices could be headed below the $15 / barrel mark.

    Weaker oil prices are beneficial for India, especially, considering the re-structuring proposed in the sector. The BSE Sensex has crossed September 11 levels of 3,150. The next resistance is at 3,300 levels.

     

     

    Equitymaster requests your view! Post a comment on "Good start to Samvat 2058". Click here!

      
     

    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    Will They Haul Off Trump's Statue, Too? (Vivek Kaul's Diary)

    Aug 16, 2017

    All across the country, the old gods become devils. New, gluten-free gods take their places...

    This Company Beat the Business World's 'Three Killer Cs' (The 5 Minute Wrapup)

    Aug 16, 2017

    And what it has in common with beating the stock market too.

    5 Steps To Become Financially Independent (Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Let's Hope This Correction Continues (The 5 Minute Wrapup)

    Aug 14, 2017

    Last week's correction is making a number of Super Investor stocks look a lot more attractive...

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    Proxy Plays: A Smart Way to Bet on 'Off Limits' Companies(The 5 Minute Wrapup)

    Aug 4, 2017

    The small-cap space is full of small players that are clear proxies to great growth stories and Indian megatrends.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    S&P BSE SENSEX


    Aug 16, 2017 (Close)

    MARKET STATS