Brent crude hits lowest level since August on de-escalation signs
Global oil benchmark prices fell 3.02 per cent to $89.55 a barrel following comments from US President Donald Trump regarding the conflict with Iran.
Brent crude prices fell to their lowest level since August 31 on Tuesday afternoon, according to Business Today. The global oil benchmark dropped 3.02 per cent to $89.55 a barrel.
The decline followed a nearly 6 per cent fall on Monday. US President Donald Trump said the war involving Iran was "effectively over" and downplayed the need for further military action against Tehran "at this point".
Lower oil prices may reduce import expenditure and ease inflationary pressures for India, which is one of the world's largest crude oil importers. Meanwhile, the Indian rupee traded below the 94-mark against the US dollar, up from a record low of 96.96 in May.
Ajit Mishra, SVP (Research) at Religare Broking, said Nifty's ability to sustain above the 24,600–24,800 zone will be important to preserve a positive bias. He recommended using consolidation to selectively accumulate quality stocks in sectors such as banking, pharma, auto, infrastructure and capital markets.
Ponmudi R, CEO of Enrich Money, noted that the market's ability to hold ground reflected investor confidence, supported by foreign institutional buying, stable crude prices and a firm rupee. Foreign institutional investors (FIIs) have returned to buying Indian equities in November.
Indian equity benchmarks and foreign exchange markets remained shut on Tuesday for Diwali Balipratipada.