12:15 pm Oil rally possible?:
12:15 pm Oil rally possible?:Global crude oil prices at seven-year lows will not continue and could swing upwards in as little as a year, OPEC Secretary-General Abdullah al-Badri said on Tuesday, as the low-price cycle leads to cuts in output from some producers.
Oil prices have fallen by about two-thirds since mid-2014, with Brent crude on Monday flirting with its lowest level since 2004 at just above $ 36 a barrel.
Most analysts, however, don’t expect oil prices to regain the $ 100 mark until 2017 or later, arguing that producers will continue to pump out more crude than is being consumed.
Also read – Indian mkt to rally post Fed hike, see stable rupee: Ridham
12:00 pm Market Check
Strong trade continued on Dalal Street in noon trade as the Sensex hit double century following green tick in global peers ahead of outcome of Federal Reserve meeting tonight.
The 30-share BSE Sensex rose 201.77 points or 0.80 percent to 25522.21 and the 50-share NSE Nifty climbed 58.60 points or 0.76 percent to 7759.50. The BSE Midcap also gained nearly 1 percent as market breadth remained strong.
About 1561 shares advanced against 739 shares declining on the Bombay Stock Exchange.
In Asia, Nikkei and Hang Seng gained 2.6 percent and 1.9 percent, respectively, tracking positive lead from Wall Street. Analysts believe the rally in US and Europe overnight indicates markets are fully pricing in the expected Federal Reserve interest rate hike; the Fed’s decision is due on Wednesday.
Shares of ONGC, Bharti Airtel, GAIL and ICICI Bank rallied 2-4 percent followed by Infosys, TCS, HDFC, L&T, SBI and Axis Bank. Mahindra & Mahindra was down nearly 4 percent after the Supreme Court has put a ban on registration of diesel vehicles (having over 2000cc engine capacity) partially in Delhi.