3:10 pm Oil price:
3:10 pm Oil price:Oil prices fell after Goldman Sachs cut its crude forecasts, citing global over-supply and concerns over the health of the Chinese economy, and after Saudi Arabia dismissed the idea of an oil producer summit.
Joining a long list of banks cutting their price forecasts, Goldman Sachs on Friday reduced its 2015 US crude oil forecast to USD 48.10 a barrel, down from USD 52. The bank lowered its 2016 forecast for US crude to USD 45 from USD 57.
Goldman cut its 2015 Brent price forecast to USD 53.70 a barrel from USD 58.20, and said it saw 2016 Brent prices at USD 49.50, down from its earlier USD 62 forecast. Brent for October was down USD 1.00 at USD 47.89 a barrel by 0830 GMT. US crude, also known as West Texas Intermediate or WTI, was down USD 1.05 cents at USD 44.87 a barrel.
2:55 pm Market Update: The Sensex rose 56.29 points to 25678.46 and the Nifty rose 18.05 points to 7806.15. About 1552 shares have advanced, 1015 shares declined, and 112 shares are unchanged on the BSE.
2:40 pm Amtek Auto spikes: Shares of Amtek Auto rallied 60 percent today on capital infusion by promoters through preferential allotment. The automotive component manufacturer has received nearly Rs 75 crore from promoters.
“Allotment committee of board of directors, on September 10, has allotted 44,37,500 equity shares of face value of Rs 2 each at a premium of Rs167/-aggregating to Rs 74,99,37,500 to the promoters group companies by way of preferential allotment,” said the company in its filing to exchanges.
The stock had been witnessing selling pressure, especially after it reported loss (of Rs 157 crore) for the first time ever and removal from F&O segment by National Stock Exchange.
2:20 pm Oil supply tightening: Oil markets are beginning to tighten after a dramatic collapse in prices over the last year, reducing production in many parts of the world and stimulating extra fuel consumption, the West’s energy watchdog said today.
The International Energy Agency (IEA) said a move by the world’s big oil exporters in OPEC, led by Saudi Arabia, to defend their market share “regardless of price” appeared to be working. The strategy was driving out costly, inefficient production from other parts of the world, it said.
“Oil’s price collapse is closing down high-cost production from Eagle Ford in Texas to Russia and the North Sea,” the IEA said in its monthly report.
The agency, which advises the world’s biggest economies on energy policy, said the plunge in prices was expected to cut oil production from countries outside OPEC by nearly 500,000 barrels per day (bpd) next year, almost 300,000 bpd more than previously forecast.
US light, tight oil supply could fall by nearly 400,000 bpd next year, the agency said.
2:00 pm Market Check
The market continued to be in consolidation mode ahead of July industrial output data later today. The Sensex rose 40.78 points to 25662.95 and the Nifty gained 8.15 points at 7796.25.
The broader markets also came off day’s high with the BSE Midcap rising 0.13 percent and Smallcap up 0.6 percent. About 1486 shares have advanced against 1016 shares declined on the Bombay Stock Exchange.
Amtek Auto topped the buying list of BSE Midcap, up 18 percent followed by Sobha, IL&FS Transportation, SpiceJet and Atul with 5-8 percent. However, Cox & Kings, CCL International, Godrej Industries, Monsanto India and Shriram City lost 3-6 percent.