Stocks get off record level, oil risks point to pain

Crude oil surged to the highest level since mid-2015 after a pipeline blast in Libya restricted Opec (Organisation of the Petroleum Exporting Countries) output, reigniting worries on inflation and the spectre of fiscal slippage.

The BSE Sensex closed at 33,911.81, falling from an all-time intra-day high. It was down 98.80 points, or 0.29 per cent, from its previous close.

The gauge had gained 254.33 points in the previous two sessions.

The NSE Nifty slid 40.75 points, or 0.39 per cent, to 10,490.75 after scaling a fresh peak of 10,552.40.

"Domestic indices failed to sustain near all-time high as a depreciating rupee and surge in oil price influenced investors to book profit and pushed the market on to a negative note," said Vinod Nair, Head of Research, Geojit Financial Services.

Tensions on the Korean peninsula resurfaced, making investors nervous.

Ahead of this year's last expiry in derivative contracts tomorrow, the participants were seen liquidating their bets at a record level. The drop in GST collection in November only added to the nervousness.

While foreign portfolio investors (FPIs) sold shares worth a net Rs 44.07 crore, domestic institutional investors (DIIs) purchased equities of Rs 544.50 crore yesterday, according to provisional data.

Bharti Airtel hit the skids, losing the most by 1.62 per cent. ICICI Bank, L&T, SBI, Bajaj Auto and TCS slumped by up to 1.53 per cent. Loss for sectoral indices went up to 0.81 per cent.

State-owned oil companies such as IOC, HPCL and BPCL turned sticky, falling by up to 1.73 per cent, as crude oil prices surged in global markets.

The small-cap index retreated 0.33 per cent, breaking its seven days of gains. The mid-cap barometer followed suit and slipped 0.19 per cent after snapping eight sessions of upmove.

Reliance Communications today extended its previous rally, soaring 34.74 per cent, as investor sentiment remained upbeat following the announcement of a revival plan. It had shot up 30.78 per cent yesterday.