The market showed its unpredictable side again as the flagship Sensex reversed two days of gains and dived about 232 points to close at 26,515 on Monday, pulled down by dismal factory output data and higher oil prices amid mixed Asian indicators.
The nervousness was palpable as investors looked forward to the release of CPI inflation, to be released on Tuesday. Wholesale inflation is due on Wednesday. The broader NSE Nifty cut a sorry figure too, which cracked below the 8,200-mark. Sentiment soured as IT stocks were hit hard by some blunt talk from US President-elect Donald Trump on visas while state-owned oil marketing companies declined after crude prices shot up to their highest since mid-2015.
Globally, oil prices soared today following a landmark deal by Russia and other non-OPEC producers to join the Organisation of Petroleum Exporting Countries (OPEC) in capping output in a bid to curb oversupply that has hammered prices down. Benchmark Brent for February contracts went up $2.41 to $56.74 per barrel in Asian trade.