Oil prices resumed their decline in Asia as a global glut of crude supplies showed no signs of abating in the face of sluggish demand, analysts said. US benchmark West Texas Intermediate (WTI) for September delivery fell 63 cents to USD 41.87 a barrel in late-morning trade, the lowest since March 2009. Brent crude for October, a new contract, was down 65 cents to USD 48.54.
WTI and Brent's September contract rose in New York on Friday after closing at their lowest level in six and a half years in the prior session. But oil came under renewed pressure in Asia after the latest data showing the number of rigs drilling for US oil increased last week, the sixth rise in seven weeks, analysts said.
The news added to fears of a prolonged global surplus as output from the Organization of the Petroleum Exporting Countries and the US remains robust despite the tumbling prices. 10:00 am Market Check The market remained under pressure in morning trade, dragged by profit booking in private banking & financials, technology and oil stocks.
The rupee, too, see selling pressure, down 21 paise ot 65.21 a dollar. The Sensex fell 247.64 points or 0.88 percent to 27819.67 and the Nifty declined 62.60 points or 0.73 percent to 8455.95. However, the broader markets outperformed benchmarks, trading flat. Cipla topped the selling list, falling 4 percent on fears that Esomeprazole sales may slow down from Q2FY16 onwards. However, its Q1 numbers were strong, led by Esomeprazole sales.
Shares of HDFC declined 1.7 percent. The housing finance company said it would sell 17.95 crore of HDFC Life to Standard Life at Rs 95/share (9 percent equity). Post stake sale in HDFC Life, company’s holding in HDFC Life will be 61.65 percent and Standard Life will hold 35 percent in HDFC Life. Infosys, Reliance Industries, ONGC, Tata Motors and Axis Bank dropped 1-3 percent while PSU banks continued to see buying interest after the government launche revamp plan 'Indradhanush' for PSU banks.
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