Sensex jumps up 270 points as oil prices dip
Mumbai: The Sensex closed 271 points higher on Thursday after three consecutive days of decline, primarily owing to the fall in oil prices.
Brent futures fell to their lowest in seven weeks on concerns that the virus outbreak in China may dent fuel demand.
Sensex closed 271 points higher at 41,386.40 while the Nifty closed at 12,179.90, up by 73 points. All the sectors ended in green except the media index.
Realty sectors stocks were the biggest gainers, followed by banks and auto sector stocks.
Siddhartha Khemka of Motilal Oswal Financial Services said that “fall in crude oil prices propelled oil marketing stocks, while bargain buying was witnessed in banking stocks. Volatility was high due to the weekly options expiry”.
Vinod Nair of Geojit Financial Services, however, said that cautious trend will be maintained in the near-term since a lot has been factored in the market about budget wish list and revival in earnings growth, while the start to Q3 result is below par.
Asian shares took a beating on Thursday, led by the biggest slide in Chinese stocks in more than eight months as investors concern that the tourism and demand might get hit due to the coronavirus, which has killed at least 17 people.
The virus outbreak comes as the country is entering one of its busiest travel periods, its Lunar New Year holiday.