Nifty up for fourth consecutive day even as crude prices rise

Mumbai, Sep 6 :  Nifty closed on a positive note for the fourth consecutive session as most of the sectoral indices were in green with Nifty FMCG and Nifty Pharma leading the way with gains of 1 per cent and 0.90 per cent, respectively, while some of the sectors faced profit booking like Nifty Metal and Nifty PSU Bank, said Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.

While Nifty 50 added 36 points to end the day at 19,611, Sensex gained 100 points to close at 65,880.

Sharp rise in oil prices as Saudi Arabia and Russia extended output curbs until December put pressure on global markets and currencies.Beyond what the market had anticipated, this surprise action reduced oil supply for the following four months rather than just until October.

If oil prices keep rising, India, a big oil importer, might see its current account deficit increase, Vidwani said.

The Index Maintenance Sub-Committee (Equity) has decided to exclude Jio Financial from various indices effective from September 7, in accordance with the index methodology, because it failed to hit the price band on two consecutive trading days on September 4 and 5 on the NSE.

Tata Consumer Products, Divis Laboratories, Bharti Airtel, Cipla and HDFC Bank were among the top gainers on the Nifty, while the losers were Axis Bank, Hindalco Industries, Tata Steel, ICICI Bank and NTPC.

Vinod Nair, Head of Research at Geojit Financial Services, said a spike in crude oil reverberated across the globe, reviving concerns about inflation and sparking fears of a Fed rate hike.

This led to a surge in US bond yields, causing investors to shift towards the safety of bonds and reversing the buying trend of foreign investors in the domestic market.

Nevertheless, the resilience of the domestic markets shone through as investors placed their bets on an improved outlook, ultimately helping the market recover from the initial shock, he said.