Share markets in India continued their momentum during closing hours and ended the day on a positive note. Sectoral indices were trading on a positive note, with stocks in the energy sector and realty sector leading the gains.

At the closing bell, the BSE Sensex stood higher by 297 points (up 0.9%) and the NSE Nifty closed up by 72 points (up 0.7%). The BSE Mid Cap index ended the day up 1.1%, while the BSE Small Cap index ended the day up by 1.7%.

The rupee was trading at Rs 73.65 against the US$ in the afternoon session.

Asian stock markets finished on a mixed note. As of the most recent closing prices, the Hang Seng was up by 0.1% and the Shanghai Composite was down by 0.9%. The Nikkei 225 was up by 1.2%. European markets were also trading on a mixed note. The FTSE 100 was down by 0.3%. The DAX was up by 0.4%, while the CAC 40 was up by 0.3%.

In the news from the banking space, Federal Bank share price was in focus today as the bank posted a 0.9% rise in September quarter net profit helped by higher interest income.

Net profit for the bank stood at Rs 2.66 billion in the quarter ended September 30, compared with Rs 2.64 billion a year earlier.

Gross bad loans as a percentage of total loans stood at 3.11% at September-end compared with 3% in the previous quarter and 2.39% a year earlier, while interest earned rose 16.2% during the quarter to Rs 27.6 billion.

As per the news, Indian Oil Corporation (IOC) is expected to buy back 3% of its shareholding, valued at Rs 40 billion, while Oil and Natural Gas Corporation's (ONGC) buyback programme is slated to be about Rs 48 billion and Oil India Ltd's Rs 11 billion.In the news from oil & gas sector, as per a leading financial daily, the government is said to have asked oil PSUs to consider Rs 200 billion in share buybacks.

It would be interesting to see how this pans out. Meanwhile, we will keep you updated on all the developments from this space.

In news from the commodity markets, as per a leading financial daily, OPEC Secretary-General Mohammad Barkindo today advised oil producing companies to increase capacities and invest more to meet future demand as spare oil capacity is declining worldwide.

He said that countries that are holding spare capacity are now shrinking because there has been less investment in exploration.

As per him, the global oil sector needs about US$ 11 trillion in investment to meet future oil needs in the period up to 2040 adding that import-dependent countries such as India were concerned about future oil supply.

Speaking of crude oil, almost every time a rise or fall in the stock markets is invariably linked to crude oil prices.

Logically, it seems right too. Rise in crude oil increases input costs for dependent firms. It also means rising inflation. Rising inflation means rising interest rates.

It also puts pressure on the government to cut excise duty, thereby impacting its revenues. We have already seen that happening. After all, there is an election year coming up.

But has it really affected the stock markets?

Are Stock Market Returns Really Linked to Crude Oil Prices?