Indian stock markets post highs even as Brent crude costs drop

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Indian stock markets post highs even as Brent crude costs drop

The Indian stock market recovered on Monday after suffering tremendous slide the week before. However, where companies engaged in marketing of oil saw their stock prices move upwards, other companies didn't record any gains.

The upward trajectory for the former category of companies came after the Indian government's announcement that it wouldn't be stopping the currently-prevalent practice of deregularisation for prices for fuel. The government had to step in with the reassurance because on Thursday, on account of increasing petrol and diesel prices in the country, it had announced a cut of about Rs.

2.50 per litre for both petrol and diesel. Of this, while Rs. 1.5 was to be the cut in the excise duty of the petrol and diesel costs, the pretrol and diesel retailers were asked to reduce the costs of the fuels by Re. 1 per litre.

This had caused frenzy among the retailers and brought back not-so-distant memories of when the fuel prices used to be regulated. Meanwhile, in terms of the stock market, at the time of its close, the Bombay Stock Exchange (BSE) had posted an increase of about 0.28% while the National Stock Exchange (NSE) which is based out of the Indian capital, New Delhi posted an increase of about 0.31%.

Earlier, on the same day, the Chinese stock market had slumped while the cost of the Brent and American crudes had also fallen.