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The BSE Sensex is trading higher by 38 points (0.2%) and the NSE Nifty is trading down by 1 point (0.01%). The BSE Mid Cap index is trading up by 0.2% while the BSE Small Cap is trading up by 0.6%. Gold prices, per 10 grams, are trading at Rs 29,192 levels. Silver price, per kilogram, is trading at Rs 39,624 levels. The rupee is trading at 66.20 to the US$.
Crude oil is trading down by around 1.5% at Rs 2,773 per barrel.
The downtrend in crude oil continued as 16 major petroleum producers meeting in Doha, Qatar failed to reach an agreement over output freeze. The failure has set up the stage for further weakness in crude oil prices. It was noted that Saudi Arabia, the world's largest exporter of crude oil, refused to go along with the plan that would have capped crude oil production at January levels up through October this year.
To add to the above woes is the OPEC's prediction of less than expected crude oil demand in 2016. Organisation of the Petroleum Exporting Countries (OPEC) recently said that world oil demand will grow by 1.20 million barrels per day (bpd) in 2016. This is 50,000 bpd less than expected previously. The estimates were lowered because of a slowdown in Latin America and China. OPEC further said that weakness in Brazil's economy, the removal of fuel subsidies in the Middle East and milder winter temperatures in the northern hemisphere could prompt further cutbacks in oil demand this year.
This all signals a larger supply glut this year ahead. Also, OPEC's above estimates could impact producers' efforts to bolster prices going ahead.
Asad Dossani, editor of Daily Profit Hunter, recently wrote that OPEC has lost control of oil prices...and the resultant volatility is great for traders. You can read the entire article here.
To keep a regular tab on the movements in crude oil prices, you can read weekly updates from the Daily Profit Hunter team here. Their roundup tracks the developments in the global economy as well as currency and commodity markets.
Most of the stocks in the telecom space are trading on a positive note with Tata Communications and ITI leading the gains. In another news update it was reported that Bharti Airtel has launched its 4G services in Chidambaram, Sriperumbudur and Karaikudi in Tamil Nadu.
It was noted that the company is providing 4G services at the price of 3G and the services can be availed by subscribers with immediate sim swap and home delivery of sim cards. One shall note that Airtel was the first operator to launch 4G in Tamil Nadu back in June 2015.
Also, on a separate note, the company has added the maximum number of subscribers in the month of February. It added 29 lakh customers to take its total user base to 248 million with 32.4% market share at the end of February.
After being badly hit in 2012, the telecom sector has bounced back with a revival in subscriber additions. However, does the telecom sector fare well on the investment front? Click here to find out (subscription required).
Bharti Airtel is a leading integrated telecommunications company with operations in 20 countries across Asia and Africa. The company ranks amongst the top 5 mobile service providers globally in terms of subscribers. To know our view on the stock of the company, you can read the entire result analysis report here (subscription required).
Presently the stock of Bharti Airtel is trading down by 0.3%.
As per a report by DBS, India's performance on the exports front is unlikely to improve in a hurry due to its close correlation with global imports.
One shall note that exports dipped 5.47% in March to US$ 22.71 billion. This was the 16th consecutive month of decline amid contraction in shipments of petroleum and engineering goods on a tepid global demand.
The performance on the export front has been poor since the second half of 2015. One of the articles form The Daily Reckoning explains the reasons behind the same. You can read it here.
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