Key barometers marched ahead and hit fresh intraday high in mid-morning trade. The Nifty 50 index scaled the crucial 11,900 mark. Steep slide in crude oil prices and positive global shares boosted sentiment. The Nikkei India Manufacturing Purchasing Managers' Index (PMI) climbing to a near eight-year high also triggered buying.
At 11:29 IST, the S&P BSE Sensex, advanced 719.77 points or 1.81% at 40,592.08. The Nifty 50 index was gained 215.9 points or 1.84% at 11,923.80.
The broader market moved in tandem with key benchmarks. The S&P BSE Mid-Cap index was up 1.33% while the S&P BSE Small-Cap index was up 1.35%.
The market breadth was strong. On the BSE, 1468 shares rose and 592 shares fell. A total of 123 shares were unchanged. In Nifty 50 index, 45 stocks advanced while 5 stocks declined.
Buzzing Index:
PSU Oil Marketing Companies (OMC) firmed up after international crude oil prices slumped. Hindustan Petroleum Corporation (up 2.89%), and Indian Oil Corporation (up 2.64%) and Bharat Petroleum Corporation (up 1.12%) advanced.
In the commodities market, Brent crude for April 2020 settlement was up 30 cents at $54.75 a barrel. The contract tumbled 3.83% to settle at $54.45 a barrel in the previous trading session.
Lower crude oil prices could reduce under-recoveries of public sector oil marketing companies (PSU OMCs) on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Crude Oil fell to its lowest level in more than a year on concerns of the coronavirus outbreak and its potential impact on demand. China is world's largest crude importer. The media reported that OPEC members are planning an emergency meeting for discussing large production cut.
Stocks In Spotlight:
Reliance Industries (RIL) gained 2.64%. RIL informed that new production from KG D6 project is on track to start by mid-2020. In an exchange filing made after market hours yesterday, the company said that the RIL-BP joint venture confirmed that it has completed the safe cessation of production in a planned manner, from the D1 D3 field in Block KG D6 (KG-DWN-98/3), off the east coast of India. The D1 D3 field was India's first deepwater gas field to be put on production in April 2009. The RIL-BP joint venture has successfully worked to extend the life of production from the D1 D3 Field which otherwise would have ceased production in 2015 due to issues of reservoir pressure and water ingress. Through innovation and application of first-of-their kind solutions, the field's life was extended for almost five years, to February 2020, maximizing the recovery from the field.
The first-gas from these fields is expected in mid-2020. The peak production from these three fields is expected to reach 1 billions of cubic feet equivalent per day which is about 15% of the then envisaged India's demand.
Shares of L&T were trading 0.8% higher at Rs 1297. The Metallurgical & Material Handling Strategic Business Group of L&T Construction has been awarded an order by Etihad Rail Company PJSC for the Design and Build of Freight Handling Facilities across United Arab Emirates. The project will be executed in Joint Venture with Power China. The scope of work involves Design, Engineering, Procurement, Construction & Commissioning of Bulk Material handling systems (Rail loading and unloading systems) with associated civil and structural works, bulk material storage facilities, general cargo and container handling facilities with freight terminal management & control systems. L&T has classified the order win as a Large (Rs 2500 crore - Rs 5000 crore ) contract.
Bajaj Auto slipped 2.26% to Rs 3215 after total domestic auto sales fell 3.11% to 3.94 lakh units in January 2020 as against 4.07 lakh units sold in January 2019. Total 2-wheeler domestic sales slipped 22% to 1.57 lakh units in January 2020 as against 2.03 lakh units reported in January 2019. Total 2-wheeler exports jumped 19% YoY to 1.74 lakh units in January 2020. Total domestic sales (2 wheeler + CV) declined 17% to 1.92 lakh units in January 2020 as against 2.31 lakh units reported in January 2019.
Shares of SRF were trading 2.48% lower at Rs 3695. SRF's consolidated net profit soared 107% to Rs 342.99 crore in Q3 December 2019 as against Rs 165.71 crore reported in Q3 December 2018. Net sales rose 3.1% to Rs 1,807.45 crore in Q3 December 2019 over Q3 December 2018. Revenue from chemicals business reported an increase of 39% to Rs 812 crore in Q3 December 2019 from Rs 586 crore in Q3 December 2018. The operating profit of the chemical business 87% jumps to ₹143 crore in Q3 December 2019 from ₹77 crore in Q3 December 2018.
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