Market Close: Sensex slips as oil prices gain momentum

Indian benchmark indices tanked on the first day of the week as concerns about crude oil prices rising in the international market jittered investors. The top draggers were bank stocks, while the ones supporting the index were IT stocks.

Crude oil rose as the US Admin plans to pull back waivers given to countries like India for import of crude oil from Iran despite a US sanction on trade with Iran. It is expected that the US Secretary of State, Mike Pompeo will announce an end to waivers on import of Iranian crude. These measures by the US are expected to cut global crude supplies, thereby pushing prices higher in the near term.

In the international market, Brent crude prices hit US$74 per barrel on Monday, the highest since November 2018. Earlier, the crude oil producing cartel Organization of Petroleum Exporting Countries (OPEC) and allies had reduced output to spike up oil prices. But reduction in Venezuela's oil production, a crisis in Libya and disruption in supply from Nigeria are pushing prices higher.

The top draggers were Indiabulls Housing Finance down by 7.43 per cent, Yes Bank and BPCL were down by more than 6 per cent, while Indian Oil and IndusInd Bank, were down more than 4 per cent. Among the gainers were IT stocks Wipro, Infy, TCS, Tech Mahindra, albeit marginally up by less than 1 per cent.

Among the stocks that dipped the most in Monday's trade were PC Jewellers, Reliance Capital and DHFL were down more than 10 per cent, beside Tata Steel and IndiaBulls Housing. Among the top gainers were KPR Mills, Alembic Pharma, GHCL, Rajesh Export and JP Associates.

On Monday, the BSE Sensex closed at 38,649.05, down more than 491.23 points or 1.26 per cent, while Nifty50 closed at 11,594.00, down more than 158.80 points or 1.35 per cent.