Sensex up around 100 points; RIL, ONGC gain 2%

GAIL, RIL, ONGC, HUL and Sun Pharma have risen between 1%-3%

Benchmark indices continue to trade in a narrow range with positive bias led by buying demand among oil & gas shares. However, the upside is capped due to selling pressure among information technology shares.

By 10:50 am, the benchmark S&P Sensex was trading at 28,308 levels up 87 points and the Nifty50 index rose 28 points at 8,772 levels. Among broader markets, BSE Midcap and Smallcap indices are up 0.6% each.

Top gainers from the Sensex pack are GAIL, RIL, ONGC, HUL and Sun Pharma, all surging between 1%-2%. On the losing side, Axis Bank, Infosys, Adani Ports, Coal India and Dr Reddy’s Labs are down between 0.3%-1%.

Among other shares, Transformers and Rectifiers (India) Ltd (TRIL) has rallied 11% to Rs 364 on the BSE in an early morning trade after the company said it has entered into a joint venture (JV) agreement with Chinese firm Jiangsu Jingke Smart Electric Company Limited (Jingke).

Indian Oil Corporation (IOC) hits a new high of Rs 638, up 3.5% on the BSE, after the state-owned oil marketing company has fixed October 19, 2016 as the record date for 1:1 bonus issue.

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Updated at 9:38 am

Markets have erased gains and have turned choppy after making a higher opening tracking firm trends among global peers.

Second quarter results (Q2FY17) of India Inc, US Presidential elections and the implementation of the GST (goods and services tax) will drive the markets trends now, experts pointed out.

By 9:38 am, the benchmark S&P Sensex was trading at 28,302 levels up 82 points and the Nifty50 index rose 18 points at 8,761 levels. Among broader markets, BSE Midcap and Smallcap indices are up 0.4%-0.5%.

“Positive bias should linger on as long as above 8,760/8,700, but the dominant theme should continue to be “volatility”. To this end, 8,850-8,700 can be marked as the near term break out level, until inside which, indecisiveness could prevail,” adds Geojit BNP Paribas in a morning technical note.

Key benchmark indices snapped three-day winning streak yesterday as weakness in global stocks weighed on sentiment.

In overseas stock markets, Asian stocks rose bolstered by overnight rise in oil prices. US stocks rose yesterday on positive economic data. September ISM non-manufacturing came in stronger than expected at 57.1. Factory orders also increased slightly in August, while the trade deficit in the US widened more than expected in August, and mortgage applications increased 2.9% last week.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 243 crore yesterday as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 349.86 crore yesterday as per provisional data.

CORPORATE NEWS & STOCK TRENDS

Top gainers from the Sensex pack are RIL, GAIL, ONGC, Tata Motors and HUL, all surging by 1% each. Axis Bank, Coal India, SBI, Bajaj Auto and Infosys are down 0.4%-2%.

Goodyear India has surged 10% to Rs 860, also its new high on BSE, after the Goldman Sachs bought stake in tyre maker through open market.

Adani Transmission is now the largest private operator of power transmission networks in the country after buying the transmission assets of Reliance Infrastructure (R-Infra). Shares of Adani Transmission are up over 1%.  

Indian Oil Corporation (IOCL) announced that the company has fixed 19 October 2016 as the record date for 1:1 bonus issue. IOC has gained by 2%.

Oil India announced that the company led Indian consortium successfully completed two landmark acquisitions in Russia. The Indian consortium led by Oil India including Indian Oil Corporation (IOCL) and Bharat PetroResources (BPRL), a 100% subsidiary of BPCL have successfully completed two landmark acquisitions of producing upstream assets in Russia. Oil India has risen by 1%.

Power Grid Corporation of India (PGCIL) announced that POWERGRID Unchahar Transmission, a wholly owned subsidiary of the company has successfully completed the project comprising the element Unchahar-Fatehpur 400 kV D/c line and declared commercial operation on 1 October 2016. The stock has gained marginally.

Bajaj Finance announced that debenture allotment committee of the company has at a meeting on 4 October 2016, allotted 3,650 partly paid unsecured redeemable non-convertible debentures of face value of Rs 10 lakh each along with remittance of Rs 124.10 crore, on private placement basis. Shares of Bajaj Finance are marginally down.

Promoters of debt-laden ABG Shipyard will soon be losing their controlling stake. The lenders have commenced conversion of compulsorily convertible preference shares (CCPS) into equity, part of its debt restructuring process. The stock has increased over 2%.

The Cabinet Committee on Economic Affairs on Wednesday gave its nod to the acquisition of 11% stake in Russia’s Vankor oil fields by ONGC Videsh (OVL) from Rosneft Oil Company for $930 million, which will take its overall stake in the project to 26%.  ONGC is up 1%.


With Capital Market inputs