Indian markets extended gains for third straight session and closed above intermediate resistance levels on the back of sharp gains in oil&gas space. Sentiments in the sector turned positive after the Empowered Group of Ministers hiked diesel prices by Rs 3 per litre, kerosene by Rs 2 per litre and LPG by Rs 50 per cylinder. The decline in global crude oil prices also provided support.
"What the government did, day before yesterday, in terms of both hiking prices as well as removing the customs duty and reducing the excise duty on petrol, diesel and other oil products, was a good step. Circumstances have also been a little fortunate for us because the IEA is releasing 60 million barrels of oil. Oil prices have also corrected by something like $6-7, which means good news for us. If oil comes down to something like $95 a barrel, a large part of the under-recoveries will go," said Sashi Krishnan, CIO, Bajaj Allianz Life Insurance to ET Now.
Bombay Stock Exchange's Sensex ended at 18409.32, up 168.64 points or 0.92 per cent. The 30-share index touched a high of 18494.11 and low of 18132.70 in trade today.
National Stock Exchange's Nifty closed at 5529.90, up 58.65 points or 1.07 per cent. The broader index touched a high of 5552.65 and low of 5434.25 intraday.
BSE Midcap Index was up 0.80 per cent and BSE Smallcap Index moved 0.78 per cent higher.
BSE Capital Goods Index was up 1.75 per cent, BSE Bankex gained 1.60 per cent, BSE Auto Index moved 1.50 per cent higher and BSE Oil&gas Index advanced 1.31 per cent.
Bank of America Merrill Lynch has raised its target price on state-run oil marketing companies Indian Oil, Hindustan Petroleum and Bharat Petroleum. HPCL target price is increased to Rs 500 from Rs 441 per share, Oil India to Rs 1,756 from Rs 1,583, while BPCL's target price was raised to Rs 739 Rs 650.
Citigroup has said that the price hikes were well ahead of its expectations and upgraded state-run oil marketing companies including Indian Oil Corp , Hindustan Petroleum Corporation , Bharat Petroleum Corporation and Oil India to "buy" citing these companies stand out as clear near-term beneficiaries due to the sharply reduced under-recovery burden.
ONGC (4.11%), M&M (3.21%), Maruti (2.93%), Larsen & Toubro (2.70%) and SBI (1.63%) were the major Sensex gainers.
Reliance Infrastructure (-1.22%), DLF (-0.95%), Hero Honda (-0.70%), ITC (-0.64%) and Wipro (-0.34%) were the top index losers.
Market breadth was positive on the BSE with 1641 gainers against 1185 losers.
(All figures are provisional)
Source: Economic Times
Thanks and Regards,
Sanchari Sinha,
Intern at DENIP Consultants Pvt. Ltd.
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