US crude futures turned negative for the first time in history following a collapse in oil demand as the coronavirus pandemic derails the global economy.
Oil extraction site in the US. Photo: AFP
Equity benchmark indices slipped by 2.7 per cent during early hours on Tuesday in line with Asian peers after US oil prices slipped below zero dollar a barrel in overnight trade.
ADVERTISEMENT
US crude futures turned negative for the first time in history following a collapse in oil demand as the coronavirus pandemic derails the global economy.
At 10:15 am, the BSE S&P Sensex was down by 870 points or 2.75 per cent at 30,778 while the Nifty 50 edged lower by 248 points or 2.69 per cent at 9,013.
Except for Nifty pharma and FMCG, all sectoral indices at the National Stock Exchange were in the red with Nifty metal down by 5.2 per cent, auto by 5.1 per cent and private bank by 4.3 per cent.
Among stocks, index heavyweight Reliance Industries fell by 3.93 per cent to Rs 1,195.60 per share. Metal majors Hindalco dropped by 8.9 per cent at Rs 106.10 per share while Tata Steel lost by 7.1 per cent and Vedanta by 6.6 per cent.
Auto major Maruti skidded by 6.8 per cent to Rs 4,964.70 per share and Tata Motors by 5.2 per cent.
Private lenders IndusInd Bank, Axis Bank and ICICI Bank dipped by 6.7 per cent, 6.1 per cent and 5.8 per cent respectively.
However, those which gained were Dr Reddy, Cipla, Nestle India, Hindustan Lever and ITC.
Meanwhile, Asia shares were in the negative zone after an overnight tumble at Wall Street with US crude futures turned negative for the first time in history. However, it bounced back into positive territory this morning.
MSCI's broadest index of Asia Pacific shares outside Japan fell half a per cent. Japan's Nikkei fell by 2.26 per cent while Hong Kong's Hang Seng lost by 2.38 per cent and South Korea's Kospi slipped by 1.67 per cent.
Overnight stateside, the Dow Jones Industrial Average closed 592 points lower at 23,650, the S&P 500 slipped by 1.8 per cent to end its trading day at 2,823 and the Nasdaq Composite pulled back 1 per cent to close at 8,561.
Catch up on all the latest Crime, National, International and Hatke news here. Also download the new mid-day Android and iOS apps to get latest updates.
Mid-Day is now on Telegram. Click here to join our channel (@middayinfomedialtd) and stay updated with the latest news
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
