Markets Open The Day Higher As OPEC Cuts Oil Production

Business

oi-Sunil Fernandes

Benchmark indices opened the day higher, as crude prices jumped.

By Sunil Fernandes

Published: Thursday, December 1, 2016, 9:27 [IST]

Benchmark indices opened the day higher, as OPEC, the oil governing body cut oil production targets for members, fuelling a rally in crude prices. This was the first deal for oil cuts since 2008. This led to sharp gains in crude and stock prices across the globe. The Japanese Nikkei was up more than one per cent, while the Australia's ASX 200 was up 0.58 per cent.

The Sensex itself was seeing gains and moved higher by 79 points, while the Nifty saw gains of 21 points. ONGC led gainers from the Nifty, as rising crude prices tends to benefit the company the most. The stock was up 2.5 per cent in trade at Rs 295.

The other gainers from the Nifty were Lupin, Reliance Industries and Gas Authority of India. IT stocks which have seen a good rally in the last few days, continued to fall for the second day in a row. Infosys and TCS were both trading down by 0.5 per cent. Wipro, however, managed to buck the trend and was up in trade.

Among non index stocks, shares in Ratnamani Metals dropped, after its results did not match expectations. Meanwhile, the rupee fell marginally at 68.41 to the dollar. The currency is expected to trade in a range for the next few days.

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