Indian share markets finished the trading day on a weak note after retail inflation picked up to a seven-month high in October. At the closing bell, the BSE Sensex closed lower by 92 points and the NSE Nifty finished down by 38 points. The S&P BSE Mid Cap finished down by 0.22% while S&P BSE Small Cap finished down by 0.18%. Losses were largely seen in PSU stocks, capital good stocks and energy stocks.
Asian stock markets finished mixed to lower as of the most recent closing prices. Shares in China fell as the Shanghai Composite dropped 0.53%. The Hang Seng lost 0.10% while the Nikkei 225 in Japan closed unchanged. European markets are mixed today. The CAC 40 is up 0.31% while the FTSE 100 gains 0.13%. The DAX is even.
Rupee was trading at Rs 65.52 against the US$ in the afternoon session. Oil prices were trading at US$ 56.62 at the time of writing.
Oil prices fell as the prospect of further rises in U.S. output undermined ongoing OPEC-led production cuts aimed at tightening the market. The falls came after both crude benchmarks early last week hit highs last seen in 2015, but traders said the market had lost some momentum since then.
Oil prices has increased nearly 130% since January 2016. This is a typical capital cycle. And it gets interesting every time.
The expectation in the market is that prices could remain elevated owing to several reasons, such as drawdown in inventories, especially in the US, better compliance with the voluntary production cut by the Organization of the Petroleum Exporting Countries (OPEC), slower pickup in US shale oil and continued geopolitical risk in West Asia.
The OPEC is expected to extend a cut of around 1.8 million barrels per day into the whole of 2018. Since June 2017 onwards, prices of Brent have been on the rise, on the back of a drop in US crude inventories, geopolitical tension between OPEC countries, and disruption in production caused by the hurricane activity in the US.
