Biggest 1-day gain in 7-yr: Sensex up 777 points, Nifty above 7200
01 March 2016
It was a day of bulls that helped market gain more than 3 percent on hopes of rate cut and supportive global cues Tuesday. Equity benchmarks posted biggest single-day gain since May 18, 2009 (when the Sensex gained 2,110 points on elections win by UPA government).
The 30-share BSE Sensex surged 777.35 points or 3.38 percent to 23779.35 and the 50-share NSE Nifty rallied 235.25 points or 3.37 percent to 7222.30.
Experts are hopeful of rate cut as the Union Budget provided sufficient space. They were not expecting 3 percent rally in the market as Budget was not so great.
Ridham Desai of Morgan Stanley believes there is a room for rate cut for RBI now but does not expect them to advance it by a month. The cut could come about in the April policy, he feels.
According to him, the Budget chose not to take risks and retained its focus on fiscal prudence because fiscal expansion could have hurt India in case things turn for the worst in the world.
It may be a good time to enter the equity market with a 2-3 year view, says Nirmal Jain of IIFL, adding the Nifty is unlikely to fall below 6650-6700 in near-term.
Meanwhile, the rupee posted biggest single-day gains in almost 6 months, gaining past 68 a dollar following rally in equity markets. The currency closed at 67.86 a dollar, up 57 paise compared to 68.43 on Monday.
Banks, technology, auto, infra and FMCG were biggest contributors to benchmarks' gains with sectoral indices rising 3-5 percent.
FMCG major ITC topped buying list on Sensex, up 10 percent as analysts say excise duty hike on cigarettes is on expected lines. According to them, 10 percent excise duty hike is positive for the company. Credit Suisse upgraded the stock to outperform and raised target price to Rs 370 from Rs 298.
February Auto sales were mixed with Maruti Suzuki registering a 0.9 percent degrowth, hit by Jat agitation. Mahindra & Mahindra sales grew by 16 percent, Ashok Leyland 25 percent and Eicher Motors 63 percent. Shares of Tata Motors, Maruti Suzuki, Hero Motocorp and M&M rallied 3-8 percent.
ICICI Bank was the second biggest gainer on Sensex, up 8 percent. Among others, Infosys, TCS, L&T, Adani Ports and Axis Bank gained 4-5 percent.
ONGC extended losses today as well, down more than 1 percent (in addition to 10 percent loss in previous session) as brokerages downgraded stock after change in oil cess. CLSA downgraded the stock to sell from underperform and slashed target price to Rs 170 from Rs 230.
"The change in crude oil cess to 20 percent ad valorem is a disappointment for upstream stocks. This along with assumption of lower crude and rupee drives a 15-27 percent cut in FY17/18 EPS on ONGC and Oil India," says CLSA. Oil India fell 2.5 percent.
The broader markets also participated in rally with BSE Midcap and Smallcap indices rising 3 percent each. The market breadth was strong as about four shares advanced for every share declining on the BSE.
Global markets too were higher despite slump in China's manufacturing sector. Germany's DAX gained 1.4 percent. France's CAC and Britain's FTSE added half a percent each. In Asia, Shanghai and Hang Seng climbed over 1.5 percent. Oil prices rose 1 percent as fall in US and OPEC output might tighten an otherwise bloated market. Brent crude was trading at USD 36.92 a barrel.
3:30 pm Market closing: The Sensex and Nifty post biggest single-days in absolute terms in 7 days. The Sensex was up 777.35 points or 3.4 percent at 23779.35, and the Nifty up 235.25 points or 3.4 percent at 7222.30. About 2010 shares advanced, 587 shares declined, and 116 shares were unchanged. . About 2009 shares have advanced, 587 shares declined, and 117 shares are unchanged. ITC was up 10 percent while ICICI Bank, Maruti, Hero and Adani Ports were top gainers. ONGC, HUL and Dr Reddy's Labs were losers in the Sensex.
3:15 pm Market outlook: It may be a good time to enter the equity market with a 2-3 year view, says Nirmal Jain of IIFL. But at the same time, investors should have a bottom-up stock picking approach, he says. Buy some of the IT companies, private banks now if you are building a portfolio, he tells investors.
Jain does not see more than 5-7 percent downside from current levels. He believes Nifty is unlikely to fall below 6650-6700 in the near-term.
2:58 pm Market Update: The Sensex spiked 733.69 points or 3.19 percent to 23735.69 and the Nifty climbed 223.45 points or 3.20 percent to 7210.50.
About 1912 shares advanced against 586 declining shares on the BSE.
2:40 pm UMPPs auction: Three ultra mega power projects entailing an investment of Rs 90,000 crore will be bid out in the current fiscal, while two UMPPs in Jharkhand are likely to be auctioned in 2016-17.
"Bidding out three ultra mega power projects (UMPPs)- Cheyyur in Tamil Nadu, Bedabahal in Odisha and Banka in Bihar- in this financial year would attract an investment of approximately Rs 90,000 crore," said the document on Implementation of Budget Announcements 2015-2016.
Deoghar and Tilaiya UMPPs in Jharkhand may be bid out in the next fiscal after due process is met, with an investment of Rs 60,000 crore, it said.
The Power Ministry has identified the five UMPPs for bidding, it said.
2:35 pm Gammon Infra in news: Gammon Infrastructure today said it has completed the first tranche of stake sale in nine projects on approval from National Highways Authority of India (NHAI) and lenders.
The infrastructure firm had announced to sell stakes in 9 projects valued at Rs 6,750 crore to Brookfield and Core Infra India Fund, a deal that will fetch Rs 563 crore on completion as well as reduce its debt considerably.
"Based on receipts of approvals from the NHAI, consent from the project SPV lenders, approvals from Gammon Infrastructure Project Ltd (GIPL) shareholders of shareholders, and satisfaction of conditions precedent on 6 SPVs out of the 9 SPVs, the first tranche of the transaction has been successfully completed today," it said in a BSE filing.
2:25 pm Rupee update: The rupee gained past 68 a dollar intraday, continuing uptrend for the second consecutive session post Union Budget.
The currency appreciated 44 paise to 67.98 a dollar after the government said it would stick to FY17 fiscal deficit target of 3.5 percent and is hopeful of meeting FY16 fiscal deficit target of 3.9 percent.
2:15 pm Rate cut possible?: The Reserve Bank is likely to go for a 50-basis point rate cut this calender year as the Budget gives the central bank sufficient room to adopt a more accommodative stance, UBS said in a research note, adding that its Nifty target is 7,500.
According to the global financial services major, the Budget has given more preference to stability rather than growth and this should give more room to cut key policy rates.
"We now expect 50 bps of policy rate cut in calendar year 2016 (from 25 bps) as the Budget should give RBI sufficient space," UBS said in a research note.
Rather than opting for any growth-boosting stimulus, the Budget has stuck to the fiscal deficit of 3.5 percent of GDP for 2016-17.
2:00 pm Market Check
Bulls have complete control over Dalal Street today as the Sensex shot up 702.96 points or 3.06 percent to 23704.96. The Nifty reclaimed 7200-mark, up 213.95 points or 3.06 percent to 7201.
About 1846 shares advanced against 574 declining shares on the BSE.
ITC rallied 10 percent as analysts say hike in excise duty on cigarettes is on expected lines.
Shares of ICICI Bank, Infosys, TCS, L&T, Tata Motors, Maruti, Axis Bank, Hero Motocorp, M&M, Adani Ports and Wipro gained 3-7 percent.
ONGC fell 2.5 percent as CLSA downgraded the stock to sell post Union Budget.
The brokerage also cut FY17/18 EPS by 15-27 percent and slashed target price to Rs 170 (from Rs 230) on the stock. According to CLSA, upcoming gas price cut, more impairment charges and pay revisions are EPS risks.
1:45 pm Macro economy: The Reserve Bank is likely to go for a 50-basis point rate cut this calender year as the Budget gives the central bank sufficient room to adopt a more accommodative stance, UBS said in a research note, adding that its Nifty target is 7,500. According to the global financial services major, the Budget has given more preference to stability rather than growth and this should give more room to cut key policy rates. "We now expect 50 bps of policy rate cut in calendar year 2016 (from 25 bps) as the Budget should give RBI sufficient space," UBS said in a research note.
1:30 pm The upturn in oil prices bodes, which will likely continue for the year, bodes well for equities, says ace fund manager Sankaran Naren, CIO of ICICI Prudential AMC. In an interview with CNBC-TV18, Naren said that while it was difficult to say where the market will bottom or whether it has bottomed out, sentiment indicators showed so. "We believe this is the best year to put money into equities. The more FIIs sell, the more positive you should be," he said. "The economic cycle is bound to improve this year."
It's a bull run on Dalal Street post Budget when benchmark indices are gushing ahead. The Sensex is up 615.63 points or 2.7 percent at 23617.63 and the Nifty is up 182.10 points or 2.6 percent at 7169.15. About 1823 shares have advanced, 570 shares declined, and 96 shares are unchanged.
ITC, ICICI Bank, Hero, Maruti, Adani Ports are top gainers while ONGC, HUL, Dr Reddy's Labs and HDFC are major losers.
Meanwhile, investment through participatory notes (P-Notes) into India's capital markets has hit a 16-month low of Rs 2.31 lakh crore at the end of January amid weakness in equity markets. P-Notes, which are mostly used by overseas HNIs (high net worth individuals), hedge funds and other foreign institutions, allow investors to invest in Indian markets through registered foreign portfolio investors (FPIs), the key driver of Indian markets. This saves time and cost for them, but the flip side is the route can also be used for round-tripping of black money.
12:58 pm Market Update: Equity benchmarks gained further in afternoon trade on further value buying post Union Budget. The Sensex rallied 610.79 points or 2.66 percent to 23612.79 and the Nifty rose 184.15 points or 2.64 percent to 7171.20.
About four shares advanced for every share declining on the Bombay Stock Exchange.
ITC surged more than 8 percent, which is set for biggest one-day gain since May 18, 2009.
12:45 pm Interview: The infrastructure cess is sure to have a negative impact on the overall demand said VS Parthasarathy, CFO, Mahindra and Mahindra but on other hand the various measures to boost rural economy, infrastructure and farmer income could help mitigate the negatives.
The Finance Minister in Union Budget 2016 proposed a cess of 1 percent on small petrol, LPG and CNG cars, 2.5 percent on diesel cars of certain capacity and 4 percent on other high-powered vehicles and SUVs.
M&M has a strong presence in rural India through tractors. Moreover with the monsoons likely to be good in the current year, most indicators are positive for the rural market and thus in turn bode well for the company too.
According to him the 1 percent TDS on passenger vehicles will not impact the costs of the vehicle because 1 percent TDS can be reclaimed by the customers.
12:30 pm FinMin clarification on EPF: The government today has clarified that the popular public provident fund (PPF) scheme will continue to stay out of the tax ambit and that tax will be levied only on accrued interest on 60 percent of employee provident fund (EPF) contribution.
This was confirmed by Revenue Secretary Hasmukh Adhia who spoke to PTI, a day after the Union Budget set the cat among the pigeons when the Finance Minister vaguely referred to tax being referred to PF schemes.
Further, small salaried employees with up to Rs 15,000/month income will be kept out of purview of proposed taxation of EPF, he said.
Following a public outcry, Minister of State for Finance told IBNLive that detailed guidelines will be issued shortly.
12:15 pm Economic growth: Union Budget 2016 has majorly focused on income trends of people, says Anish Damania, CEO & Head - Institutional Equities at IDFC Securities.
Boost to urban income via the 7th Pay Commission and OROP will be a positive for sales growth, he says. Damania expects corporate earnings to be near 20 percent in FY17.
Damania further sees a sales growth of 9 percent and 15 percent growth in FY17.
The market extended rally in noon trade with the Sensex rising 572.10 points or 2.49 percent to 23574.10. The Nifty is inching towards 7200, up 175.55 points or 2.51 percent to 7162.60 on hopes of likely rate cut.
Sources told CNBC-TV18 on Monday that the Reserve Bank of India may cut repo rate soon. Banks, auto, infra, technology and FMCG stocks took lead among gainers.
ITC topped the buying list on Sensex, up more than 8 percent followed by Hero Motocorp (ahead of February sales) and ICICI Bank with 6 percent upside.
Maruti Suzuki gained 6 percent despite a 0.9 percent degrowth in February sales due to Jat agitation in Haryana.
The market breadth remained strong as more than three shares advanced for every share declining on the BSE.
11:55 am Sales: Maruti Suzuki continued to report degrowth in auto sales for second consecutive month in February. The country's largest car manufacturer sold 1.17 lakh vehicles in month gone by, down 0.9 percent compared to year-ago period. February sales were impacted by Jat stir while maintenance shutdown for a week hit January sales growth. "During the month, reservation agitation in Haryana had disrupted component supplies, causing a temporary suspension of production. Total production loss due to this was over 10,000 units," says Maruti in its filing.
11:45 am Macro: The Reserve Bank is likely to continue with its accommodative stance and may go for a 25 basis points rate cut, an HSBC report says. In the Budget for 2016-17, the government has stuck to the pre-announced fiscal deficit target of 3.5 percent of GDP and this move is likely to have a far-reaching impact on the macro economy, according to the global financial services major. "This was not easy for a government which was trying to protect growth as well as preserve macro stability. Yet, it bit the bullet," the report added.
11:30 am Interview: The government's decision to exempt real estate investment trusts (REITs) from dividend distribution tax (DDT) has eliminated the one major stumbling block that was standing in the way for the securities, says DLF CFO Ashok Tyagi. In an interview with CNBC-TV18, Tyagi said REITs should now take off in a big way and said he expects some listings to happen in the next few months. REITs allow commercial real estate developers to turn their rent-yielding assets into securities that investors can buy into. REITs, which are listed on exchanges, thus help in securitization, better asset utilization and management of balance sheets.
The market is surging ahead after the Budget proposals by Finance Minsiter Arun Jaitley. The Sensex is up 505.07 points or 2.2 percent at 23507.07, and the Nifty up 153.85 points or 2.2 percent at 7140.90. About 1612 shares have advanced, 403 shares declined, and 65 shares are unchanged.
ITC is up 8 percent, while ICICI Bank, Hero, Maruti and GAIL are top gainers in the Sensex. ONGC, HDFC, Tata Steel, HUL and Dr Reddy's Labs are major losers in the Sensex.
Gold regained Rs 30,000-mark by surging Rs 258 to Rs 30,008 per 10 grams in futures trading today as speculators widened their bets amid a firming trend overseas. Analysts said a firming trend in the global markets as data showed Chinese manufacturing contracted for a record seventh month, boosting demand for a safe-haven, influenced gold futures. Globally, gold rose 0.7 per cent to USD 1,247.78 an ounce in Singapore. The precious metal had climbed 11 per cent in February, the biggest monthly increase since January 2012.
10:55 am Market Update: The Sensex rose 494.78 points or 2.15 percent to 23496.78 and the Nifty climbed 151.40 points or 2.17 percent to 7138.45.
About four shares advanced for every share declining on the BSE.
10:50 am Ambit on Budget: Ambit says even relative to the low expectations that had been created coming into Budget day, the FM delivered an underwhelming budget that disappointed on several fronts, most notably by changing the focus of spending growth from plan to non-plan spending and by not providing extra funds for a PSU bank recap.
Most ambitious aspect of the budget is 3.5 percent budget deficit number. "Given that the FM announced a 10.8 percent rise in spending, for the FM to deliver a 3.5 percent deficit he will need 16 percent total receipts growth in FY17. That appears to us to be a tall order," it says.
10:45 am Interview: The Union Budget 2016 imposed a one percent tax deducted at source (TDS) on passenger vehicles costing more than Rs 10 lakh. A 1-4 percent infrastructure cess has also been imposed on PVs.
The infrastructure cess will be a burden to growth, especially look at the current volatility in the market, says RC Bhargava, Chairman of Maruti Suzuki.
''No company has yet made a decision whether they (companies) will pass on or absorb the entire the amount or part of amount,'' he says adding that the ''companies will pass the entire burden of (infra) cess to the customers.''
Taxes and cesses will be passed through all models, he adds.
10:40 am ITNL wins order: IL&FS Transportation Networks in joint venture with Elsamex SA, a wholly owned subsidiary of the company in Spain had submitted the bid to the Ethiopian Roads Authority, Federal Republic of Ethiopia for design, improvement works and management and maintenance services of (i) Nekempte - Anger Gutin-Andhode Road Section (86.10 km) and (ii) Agamsa-Bure Road Section (84.56 km) on an output and performance based road contract (OPRC).
The Director General, Ethiopian Roads Authority has awarded this projects for development to joint venture for a period of 8 years.
Project is funded by the World Bank and the estimated total contract value is USD 223 million (approximately Rs. 1524.76 crore).
10:35 am Manufacturing PMI: Manufacturing business conditions in India continued to improve, with new orders, exports, output and purchasing activity all rising in February, according to Nikkei Markit report.
At 51.1 in February, unchanged from January's reading, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) – a composite single-figure indicator of manufacturing performance – pointed to a second consecutive monthly improvement in business conditions across the sector.
However, a faster expansion in new business inflows failed to lift growth of output and workforce numbers were left broadly unchanged again, the report says, adding PMI data also highlighted a weaker rise in costs and the first reduction in selling prices since September 2015.
10:30 am Piramal's acquisition: Piramal Enterprises' step-down wholly owned subsidiary in the USA, Decision Resources Group, today announced acquisition of all of assets of Adaptive Software, LLC and entire control & ownership of its wholly owned subsidiary, AdaptiveRx LLC on February 29.
10:25 am Market Expert: S Nagnath of DSP BlackRock Investment says fiscal deficit has been maintained on expected lines and spending on rural infra isa positive step.
He expects rural demand to pick up on expectations of a good monsoon and spur in rural demand will boost economy.
According to him, period of global volatility is behind behind us and consumption engine will accelerate going forward.
He feels downside for the market capped at 6800-7000 on the Nifty.
10:20 am Prabhudas Lilladher on Budget: Despite formidable challenges emanating from a sharply lower nominal GDP growth in FY16, fragile global economy and ballooning of expenses as a result of VII pay commission award & OROP, the Finance Minister (FM) has done an admirable job of containing fiscal deficit to 3.9 percent of GDP in FY16 and holding steadfast to his medium-term fiscal consolidation roadmap of 3.5 percent in FY17 and 3 percent in FY18.
This adherence to fiscal rectitude would allay apprehension among investors who feared that any fiscal slippage would lead to a spike-up in government's borrowing program and impact RBI's decision in lowering rates.
10:15 am FinMin to clarify on EPF's tax: Facing wrath from all quarters after Finance Minister Arun Jaitley announced that 60 percent of the employee contribution to Provident Fund will be taxed on withdrawal, Minister of State for Finance Jayant Sinha said a clarification will be issued soon.
"We have noted concerns about changes in tax treatment. Full clarification with FAQs will be issued shortly. Have proposed prospective changes in Budget. Existing savings are not impacted in any way," Sinha said.
As per the Union Budget announced on Monday, the contributions made on or after April 1, 2016 by an employee participating in a recognised provident fund and superannuation fund, up to 40 percent of the accumulated balance attributable to such contributions on withdrawal shall be exempt from tax.
Any payment in commutation of an annuity purchased out of contributions made on or after April 1, 2016, which exceeds 40 percent of the annuity, shall be chargeable to tax.
10:10 am Nomura on Budget: The bond market yesterday saw its biggest rally in nine months after the Finance Minister announced in the Budget that the government would stick to its fiscal consolidation plan.
In a single day, the yield on the 10-year g-sec fell from 7.78 percent to 7.62 percent, triggering a major rally in prices. (Bond prices and yield are inversely related.)
However, Vivek Rajpal, India Fixed Income Strategist at Nomura India, believes that while the bond market will take a breather following yesterday's rally, a rate cut by the Reserve Bank of India (RBI) could spart one more leg-up.
''We are likely to get another leg-up, probably another 10 basis point [down for the 10-year] if we get 25 basis point cut [from the RBI],'' he told CNBC-TV18.
10:05 am L&T bags order: L&T Construction, the brand of Larsen & Toubro, has won orders worth Rs 2,213 crore, including road orders from National Highways Authority of India (NHAI) in Tamil Nadu.
"Transportation infrastructure business has bagged orders worth Rs 1,078 crore from NHAI for construction of the Kerala/TamilNadu–Villikuri -Kanyakumari sections of NH-47 and NH-47B under NHDP Phase-3 in Tamil Nadu on EPC mode," says L&T.
Projects are scheduled to be completed in 24 months and involve cumulative construction of 69.9 Km of four lane dual carriage way with concrete pavement.
10:00 am Market Check
The market is on a roll as bulls celebrate, Budget proposals by Finance Minister Arun Jaitley, in style. The Sensex is up 528.38 points or 2.3 percent at 23530.38, and the Nifty is up 157.65 points or 2.3 percent at 7144.70. About 1357 shares have advanced, 304 shares declined, and 62 shares are unchanged.
ITC, ICICI Bank, Axis Bank, GAIL and Hero MotoCorp are top gainers while ONGC, HUL, HDFC and Dr Reddy's Labs are losers in the Sensex.
Gold rose for a second straight session on Tuesday as global economic concerns spurred safe-haven demand and assets in the top bullion fund reached the highest since 2014.Asian shares rose slightly in early trade on Tuesday, with sentiment bolstered by China's easing move and gains in oil prices but also constrained by lacklustre US and European data that kept concerns about global growth momentum alive.
9:50 am Business: The government's decision to exempt real estate investment trusts (REITs) from dividend distribution tax (DDT) has eliminated the one major stumbling block that was standing in the way for the securities, says DLF CFO Ashok Tyagi.
In an interview with CNBC-TV18, Tyagi said REITs should now take off in a big way and said he expects some listings to happen in the next few months.
REITs allow commercial real estate developers to turn their rent-yielding assets into securities that investors can buy into. REITs, which are listed on exchanges, thus help in securitization, better asset utilization and management of balance sheets.
9:45 am Market outlook: The Budget 2016 was not damaging and kept the course is the word coming in from Ridham Desai, Head-India Equity Research & India Equity Strategist, Morgan Stanley.
With the world currently being in a challenging spot, the Budget chose not to take risks and retained its focus on fiscal prudence because fiscal expansion could have hurt India in case things turn for the worst in the world, says Desai.
According to him the market volatility on the Budget day is not a new development, in fact yesterday it was less volatile. The selling in the market yesterday was more due to global factors and not because of Budget believes Desai, adding that there is selling happening all across the world especially with US economy still mixed and Europe on the brink of deflation.
9:40 am Interview: The 1 percent increase in excise duty on jewellery articles proposed under the Union Budget on Monday comes as negative for the company and the sector, says Bhaskar Bhat, MD of Titan. Speaking to CNBC-TV18, he said that this will widen the gap between the unorganized industry as the latter does not have to bear this additional duty.
He said that the company has been burdened by the imposition of duties and withdrawal of the gold harvest scheme in the past and now it will bear these regulations as well.
9:35 am FII View on Budget: Mahesh Nandurkar of CLSA says during the FY17 Budget, the Government chose fiscal discipline over capex growth, adding it is pragmatic that the focus is on rural infra creation and not overt populism. According to him, despite unexpected cutback in allocation to roads, overall projected road capex still looks good, as it would be funded by incremental borrowing at the NHAI. This understates true fiscal deficit, he feels.
Top picks remain unchanged: HDFC Bank, ICICI Bank, Infosys, Sun Pharma, Power Grid and Zee Entertainment, Nandurkar says.
9:33 am Market check: The Sensex is up 415.64 points or 1.8 percent at 23417.64 and the Nifty is up 125.65 points or 1.8 percent at 7112.70. About 1035 shares have advanced, 259 shares declined, and 44 shares are unchanged.
9:15 am The market rebounded sharply after the market priced in Union Budget 2016 in previous session. The Sensex rose 247.60 points or 1.08 percent to 23249.60 and the Nifty climbed 69.85 points or 1 percent to 7056.90, led by ITC.
ITC rallied 6.46 percent post factoring in excise duty hike on cigarettes. ICICI Bank, Axis Bank, Infosys, SBI and PNB gained 1-3 percent while ONGC and Bharti Airtel fell more than 1 percent.
The Indian rupee gained 17 paise in the early trade today. It has opened at 68.26 per dollar versus 68.43 Monday.
Ashutosh Raina of HDFC Bank said, "The fiscally prudent Budget and expectations of further monetary easing by Reserve Bank of India (RBI) helped both currency and bond markets."
"The USD-INR pair will trade in the 67.50-68.50/dollar range in the near-term, with some appreciating bias," he added.
The yen rose broadly as investors sought its safety following a statement from the group of 20 countries that offered no concrete action to address concerns about slow growth and low inflation.
Globally, US markets closed lower while in Asia, Chinese shares rose after the PBOC eased monetary policy.
Crude oil rose above USD 36 per barrel after Saudi Arabia pledged to work with other crude producers to limit market volatility.