HPCL, IOC, BPCL tank up to 8%; Sensex pares all losses to end 60 points higher
HPCL, IOC, BPCL tank up to 8%; Sensex pares all losses to end 60 points higher
Sensex today: The benchmark indices pared intraday losses to turn green on Wednesday even as trend in Asian markets remained tepid as optimism that trade ties between Washington and Beijing were on the mend gave way to questions about the next phase of the diplomatic tit-for-tat between the two countries. The Sensex ended at 33,940, up 60.19 points, while the broader Nifty50 ended at 10,417, up 14.90 points. In the broader market, BSE Midcap slipped 0.2 per cent, while BSE Smallcap added 0.2 per cent.
Oil marketing companies came under pressure after Bloomberg reported that the goverment has asked OMCs to bear the burden of rising crude prices up to Rs 1 per litre. HPCL, IOC and BPCL share prices tanked up to 8 per cent on the NSE, and were the leading Nifty losers. Brent crude is trading at four-month high, crossing $71 mark. The government is unlikely to cut excise duty on Brent crude, reported Bloomberg.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.35 per cent higher. It gained 1.2 per cent the previous day after a speech by Chinese President Xi Jinping was seen as striking a more conciliatory stance following a week of tit-for-tat tariff threats between Beijing and Washington. The index’s surge lost some steam, however, with some Asian equity markets staggering, as the world’s two biggest economies are still seen needing to clear more hurdles before reaching any sort of settlement over trade issues.
Australian stocks were down 0.25 per cent and Japan’s Nikkei dipped 0.1 per cent. South Korea’s KOSPI rose 0.25 per cent, Hong Kong’s Hang Seng climbed 0.5 per cent and Shanghai added 0.2 per cent. The Dow advanced 1.8 per cent, the S&P 500 rose 1.7 per cent and Nasdaq added 2.1 per cent overnight after Xi on Tuesday pledged to further open up the economy and promised to cut import tariffs on products including cars.
On Tuesday, foreign institutional investors sold scrips worth Rs 684.99 crore, while the domestic institutional investors purchased stocks worth Rs 653.65 crore, provisional data with the exchanges showed. The Sensex ended at 33,880, up 91.71 points, while the broader Nifty50 closed at 10,402, up 22.90 points.
Latest Updates
VK Sharma, Head Private Client Group & Capital Market Strategy, HDFC Securities
Remarks from Chinese President Xi Jinping soothed concerns about a trade war that had rattled markets in recent weeks. Speaking at the Boao Forum, an annual economic summit, Mr. Xi pledged Beijing’s commitment to further economic liberalization as well as promising greater intellectual property protection and increased access to China’s financial and manufacturing sectors for foreign companies.
In US, Investors will get insights into current thinking of the FOMC members and glide-path of interest rates this year – as the FOMC minutes of the March meeting is released today.
Oil prices edged higher, adding to steep gains in the previous session, as markets eyed an escalation of Middle East tensions after Europe’s air traffic control agency warned of possible air strikes on Syria in the next 72 hours. Hydro-carbon exploration and allied services companies are in demand.
Government may not allow them to pass on the higher petroleum prices in an election year to consumers and that has led to sharp de-rating of government oil marketing companies.
For the 5 days on the trot nifty has managed to close in the green and now posed to break past near term resistances.
Markets at Close
The Sensex ended at 33,940, up 60.19 points, while the broader Nifty50 ended at 10,417, up 14.90 points.
Sensex Heatmap at Close
Source: BSE
Market Update
At 14:59 am, Sensex was trading at 33,935, down 55 points, while the broader Nifty50 was ruling at 10,408, down 5.85 points.
Here is why oil marketing companies plunged in today's trade
HPCL, BPCL and IOC share prices slumped up to 8 per cent on Wednesday on reports that govt will ask them to absorb price hike on account of rising global crude prices. Reacting to the news, HPCL slipped as much as 8.26 per cent, IOC 7.6 per cent, while BPCL shed 7.34 per cent on the NSE even as Nifty index traded positive, ruling above 10,400 mark. HPCL, BPCL and IOC were the leading losers on the 50-share index.
Q4: TCS, Infosys, Wipro, other tech firms may shine on earnings
In the midst of a volatile stock market and a raging controversy surrounding a private lending entity, Corporate earnings season will kick start this week, with software giant Infosys announcing its fourth quarter results on Friday. According to analysts, companies representing Nifty-50 index are expected to post better earnings growth, with technology sector likely to make a smart comeback with double-digit revenue growth. Other sectors such as auto and retail are also expected to report better-than-expected numbers as consumption-led recovery post demonetisation continues to gain ground.
Inflation data awaited
Investors await March retail inflation data due on Thursday for cues about the economy. Retail inflation likely eased to a five-month low in March as increases in food prices slowed once again but remained above the central bank’s medium-term target, a Reuters poll found.
Track major stock actions here
Sectoral trend
Nifty PSU Bank (down 2 per cent) was the leading sectoral loser among NSE indices, led by losses in PNB, Bank of India and IDBI Bank.
FAST MONEY: Fortis Healthcare, Mahanagar Gas among ten intraday trading tips
Fortis Health (Buy)
Target: Rs 150
Stoploss: Rs 144- Fortis Healthcare increased hospital business value to Rs 1,058 crore
- Manipal increased Fortis valuation by 21%
- Fortis value increased from Rs 96.5 per share to Rs 116.9 per share
Nifty dips below 10,400
At 10:25 am, Sensex was trading at 33,822, down 57.40 points, while the broader Nifty50 was ruling at 10,367, down 34.85 points.
Sensex heatmap at open
Source: BSE
Market Breadth
Market breadth, indicating the overall health of the market, turned slightly positive. On the BSE, 600 stocks advanced, 539 stocks declined, while 55 stocks remained unchanged.
Markets at Open
At 9:20 am, Sensex was trading at 33,920, up 40.22 points, while the broader Nifty50 was ruling at 10,410, up 8.60 points. In the broader market, BSE Midcap and the BSE Smallcap indices were little changed.
Rupee at Open
Rupee opens at 65 per dollar against Wednesday’s close of 64.99 per dollar
Pre-open trade
The Sensex was trading at 33,970, up 90.10 points, while the broader Nifty50 was ruling at 10,428, up 25.90 points in pre-open trade.
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The benchmark indices rose for a fourth straight session on Tuesday, tracking gains in Asian markets as conciliatory-sounding comments from Chinese President Xi Jinping helped soothe investor concerns about an escalating US-China trade spat. The Sensex ended at 33,880, up 91.71 points, while the broader Nifty50 closed at 10,402, up 22.90 points.
In the broader market, the BSE Midcap added 0.2 per cent, but the BSE Smallcap remained unchanged. Market breadth, indicating the overall health of the market turned negative. On the BSE, 1,290 stocks rallied, 1,417 stocks declined, while 133 remained unchanged. Axis Bank rallied 5 per cent and was the top Sensex gainer after bank's board curtailed the fourth term of its CEO and Managing Director Shikha Sharma to seven months following an unusual request from her that she be relieved on December 2018, 29 months ahead of the scheduled term. The board's decision come amidst RBI raising questions over her re-appointment for the fourth term as MD and CEO of the third largest private sector lender in the wake of mounting non-performing assets (NPAs).
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