Sensex gains 483 pts; oil & gas shares advance

The benchmark indices continued to trade with moderate gains in early afternoon trade. The Nifty traded above the 23,400 level. Oil & gas shares extended gains for the second consecutive trading session.

At 12:30 IST, the barometer index, the S&P BSE Sensex was jumped 483.52 points or 0.63% to 76,940.11. The Nifty 50 index gained 147.95 points or 0.64% to 23,412.80.

The Nifty 50 hit an all-time high at 23,441.95 in mid-morning trade.

The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 1.10% and the S&P BSE Small-Cap index gained 1%.

The market breadth was strong. On the BSE, 2,609 shares rose and 1,159 shares fell. A total of 118 shares were unchanged.

Economy:

India will remain the fastest-growing of the worlds largest economies, although its pace of expansion is expected to moderate, the World Bank said in its latest biannual Global Economic Prospects. After a high growth rate in FY2023/24, steady growth of 6.7% per year, on average, is projected for the three fiscal years beginning in FY2024/25. Growth is estimated to have picked up to 8.2% in fiscal year (FY) 2023/24 (April 2023 to March 2024)1.9% points higher than estimated in January.

Growth in industrial activity, including manufacturing and construction, was stronger than expected, alongside resilient services activity, which helped offset a slowdown in agricultural production partly caused by monsoons. Growth of domestic demand remained robust, with a surge in investment, including in infrastructure, offsetting a moderation of consumption growth as postpandemic pent-up demand eased.

Meanwhile, the moderation is mainly due to a slowdown in investment from a high base, the Bank stated. However, investment growth is still expected to be stronger than previously envisaged and remain robust over the forecast period, with strong public investment accompanied by private investment. Private consumption growth is expected to benefit from a recovery of agricultural production and declining inflation. Government consumption is projected to grow only slowly, in line with the governments aim of reducing current expenditure relative to GDP.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.86% to 14.64. The Nifty 27 June 2024 futures were trading at 23,432.75, at a premium of 19.95 points as compared with the spot at 23,412.80.

The Nifty option chain for the 27 June 2024 expiry showed maximum Call OI of 51.2 lakh contracts at the 24,000 strike price. Maximum Put OI of 53.1 lakh contracts were seen at 22,000 strike price.

Buzzing Index:

The Nifty Oil & Gas index rose 1.07% to 11,969.15. The index advanced 2.41% in two consecutive trading sessions.

Gujarat State Petronet (up 2.78%), Castrol India (up 2.6%), Petronet LNG (up 2.08%), Oil India (up 2.07%), Mahanagar Gas (up 1.96%), GAIL (India) (up 1.81%), Bharat Petroleum Corporation (up 1.50%), Indraprastha Gas (up 1.46%), Oil & Natural Gas Corporation (up 1.32%) and Indian Oil Corporation (up 1.17%) advanced.

Stocks in Spotlight :

HCL Technologies rose 0.95%. The IT firm said that it has expanded its strategic partnership with Olympus Corporation to enable advanced and affordable healthcare for patients through new engineering technologies.

Meanwhile, the IT giant has signed a deal worth $278 million with Germany's largest cooperative primary bank Deutsche Apotheker-und ztebank eG (apoBank).

Rites advanced 1.21% after the firm has signed a memorandum of understanding (MoU) with the Eastern Railways Andal Diesel Shed, Asansol division in West Bengal for Loco maintenance.

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