Share markets in India are presently trading near the dotted line. Sectoral indices are trading on a mixed note with stocks in the metal sector and capital goods sector witnessing maximum selling pressure.
The BSE Sensex is trading flat, while the NSE Nifty is trading down by 20 points (down 0.2%). The BSE Mid Cap index is trading up by 0.3%, while the BSE Small Cap index is trading up by 0.5%.
The rupee is trading at 68.23 to the US$.
Cipla share price, Tata Motors share price, Jet Airways share price, Dhanlaxmi Bank share price, and Bajaj Electricals share price are among the stocks in focus today as these companies are scheduled to report their results for the quarter ended March 2018.
In the news from pharma space, as per an article in the Economic Times, companies marketing medicines in India will soon be as much as liable as the manufacturers for any violations of drug regulations that could lead to spurious or substandard medicines.
The above move is expected to check lapses in quality of medicines consumed by patients in the country. There could be punishment like 3 to 5 years imprisonment for medicines flagged by regulators as not of standard quality or life imprisonment in cases where they are found spurious.
In other news, Congress leader P Chidambaram criticized the Centre for the fuel price hike and claimed that the rate can be reduced by Rs 25 per litre.
The comments come on the back of petrol and diesel prices across the country hitting all-time high levels. Fuel prices across the four metropolitan cities were raised around 30 paise on Tuesday. As per the news, the government is likely to come out with some steps this week to deal with the above situation of record high petrol and diesel rates.
Note that the above development is seen on the back of rising crude oil prices, which shot above US$ 80 per barrel. This is the highest level seen since November 2014. In the past one year alone, oil prices have surged more than 50%.
Also note that rising crude oil prices not only affect fuel prices, but also has many other repercussions for the Indian economy.
They can be a big worry for the Modi government as well.
Have a look at the chart below. It shows India's total import bill of crude oil and petroleum products on an annual basis during the Manmohan Singh regime and the Narendra Modi regime.
It is clearly evident that the Modi government has been a big beneficiary of lower crude oil prices.
As Ankit Shah wrote in a recent edition of The 5 Minute WrapUp...
Apart from that, what does rising crude oil prices mean for stock markets?
Richa Agarwal, editor of Hidden Treasure, tracks the oil and gas sector very closely. She believes the rise in crude oil prices is a bearish sign for stock markets globally. At the same time, any market correction, will throw up interesting buying opportunities in small-cap stocks.
This is what she wrote...
How the government handles this situation of rising crude oil and fuel prices remains to be seen. Meanwhile, we will keep you posted on all the developments from this space. Stay tuned.
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!
Read the latest Market Commentary
Equitymaster requests your view! Post a comment on "Indian Indices Trade Flat; Oil & Gas Sector Down 2.3%". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!