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Last Updated : May 18 2015 | 3:01 PM IST

A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming intraday gains in afternoon trade. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently up 126.21 points or 0.46% at 27,450.21.

Index heavyweight and cigarette major ITC extended intraday gain. Shares of public sector oil marketing companies (PSU OMCs) edged higher after companies announced hike in retail selling price of petrol and diesel after trading hours on Friday, 15 May 2015. Shares of state-run upstream oil companies rose. Shares of PSU bank stocks declined. Shares of private sector banks rose.

Meanwhile, the Finance Ministry said in a statement issued yesterday, 17 May 2015, that the government has managed to better its target for containing the fiscal and revenue deficits in the last financial year.

Earlier, Sensex hit one-week high and the and 50-unit CNX Nifty hit its highest level in almost a week in morning trade as these two key benchmark indices extended initial gains.

Foreign portfolio investors sold shares worth a net Rs 38.31 crore during the previous trading session on Friday, 15 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 563.60 crore on Friday, 15 May 2015, as per provisional data released by the stock exchanges.

In overseas markets, European stocks edged higher. Asian stocks were mixed. US stocks closed mostly higher during the previous trading session on Friday, 15 May 2015.

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At 13:15 IST, the S&P BSE Sensex was up 126.21 points or 0.46% at 27,450.21. The index jumped 193.31 points at the day's high of 27,517.31 in mid-morning trade, its highest level since 11 May 2015. The index gained 46.28 points at the day's low of 27,370.28 at the onset of trading session.

The CNX Nifty was up 41.75 points or 0.51% at 8,304.10. The index hit a high of 8,322.35 in intraday trade, its highest level since 12 May 2015. The index hit a low of 8,271.95 in intraday trade.

The BSE Mid-Cap index was up 49.34 points or 0.47% at 10,613.26. The BSE Small-Cap index was up 76.47 points or 0.69% at 11,117.26. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market was positive. On BSE, 1,455 shares rose and 1,002 shares fell. A total of 122 shares were unchanged.

The total turnover on BSE amounted to Rs 1926 crore by 13:15 IST.

Index heavyweight and cigarette major ITC rose 1.26% to Rs 330.20. The stock hit a high of Rs 330.60 and low of Rs 326.35 so far during the day.

PSU bank stocks declined. Oriental Bank of Commerce (down 3.27%), Canara Bank (down 2.61%), Bank of India (down 1.77%), Union Bank of India (down 3.7%), State Bank of India (SBI) (down 0.12%), Punjab National Bank (down 0.14%) and Bank of Baroda (down 0.44%), dropped.

Shares of private bank stocks rose. HDFC Bank (up 0.94%), IndusInd Bank (up 1.82%), Kotak Mahindra Bank (up 0.83%), Axis Bank (up 0.7%), Yes Bank (up 1.28%) and ICICI Bank (up 0.51%) rose.

Federal Bank fell 1.41%. The private sector bank's board of directors of the bank at its meeting held on Saturday, 16 May 2015, recommended raising share capital of the bank by way of issue of bonus shares to the shareholders of the bank in the ratio of one share for each exiting share held. The announcement was made before market hours today, 18 May 2015.

Jammu & Kashmir Bank dropped 3.42% after net profit fell 59.45% to Rs 101.61 crore on 7.14% rise in total income to Rs 2023.50 crore in Q4 March 2015 over Q4 March 2014. The Q4 result was announced on Saturday, 16 May 2015.

Shares of public sector oil marketing companies (PSU OMCs) edged higher after companies announced hike in retail selling price of petrol and diesel after trading hours on Friday, 15 May 2015. HPCL (up 3.46%), BPCL (up 2.72%) and Indian Oil Corporation (up 1.34%) edged higher.

Indian Oil Corporation (IOCL) has raised retail selling price of petrol by Rs 3.13 a litre in Delhi (including state levies) with corresponding price revision in other states. With this change, the price of petrol in Delhi stands at Rs 66.29 a litre. The hike in price took effect from the midnight of 15/16 May 2015. IOCL has raised retail selling price of diesel by Rs 2.71 a litre in Delhi (including state levies) with corresponding price revision in other states. With this change, the price of diesel in Delhi stands at Rs 52.28 a litre. IOCL said that there has been a steep increase in international prices of both petrol and diesel during the fortnight. The rupee also depreciated quite significantly during the fortnight. The combined impact of both these factors warrant an upward revision in retail selling prices, the impact of which is being passed on to the consumers with this latest price increase, IOCL said in a statement issue on Friday, 15 May 2015. The movement of prices in international oil market and the rupee-dollar exchange rate will be monitored closely and developing trends of the market will be reflected in future price changes, IOCL said.

The government has already freed pricing of petrol and diesel. PSU OMCs sell LPG and kerosene at government controlled prices.

Shares of state-run upstream oil companies rose. ONGC (up 0.8%) and Oil India (up 0.09%) edged higher.

Shares of state-run gas transmission and distribution major GAIL (India) were up 2.21%.

ONGC, GAIL (India) and Oil India currently share a part of the under recovery of state-run oil marketing companies (PSU OMCs) on sale of petroleum products by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.

Shares of Cairn India were up 1.8%.

Reliance Industries rose 1.32%. With respect to news titled "Strike at RIL's Patalganga factory on wage issue," RIL clarified after market hours on Friday, 15 May 2015, that a part of the contract workforce at its Patalganga factory have not been reporting for work predominantly in the polyester area. All others including the regular staff and contract workforce are at work. The appropriate authorities have advised that the action of the contract workforce not reporting for work is unwarranted and uncalled for. The manufacturing operations in both the petrochemicals and the polyester area have not been impacted and continue to be normal, RIL said.

Meanwhile, the Finance Ministry announced yesterday, 17 May 2015, that the government has bettered its own financial targets during 2014-15. Based on provisional accounts for the year ended 31 March 2015 (2014-15), the fiscal deficit stood at 4% of GDP for 2014-15 as against the target of 4.1%. The fiscal deficit was 4.4% of GDP in 2013-14. The revenue deficit stood at 2.8% of GDP in 2014-15 as against target of 2.9%. The revenue deficit was 3.2% of GDP in 2013-14. The government's gross tax collections rose 9% to Rs 12.45 lakh crore in 2014-15.

Meanwhile, data released by the government after trading hours on Friday, 15 May 2015, showed that India's merchandise exports declined 13.96% to $22.05 billion in April 2015 over April 2014. Imports declined 7.48% to $33.04 billion in April 2015 over April 2014. Oil imports fell 42.65% to $7.44 billion in April 2015 over April 2014. Non-oil imports rose 12.58% to $25.60 billion in April 2015 over April 2014. The trade deficit for April 2015 was estimated at $10.99 billion, which was higher than trade deficit of $10.08 billion in April 2014.

Meanwhile, Prime Minister Narendra Modi arrived in Seoul today, 18 May 2014, for a two-day official visit to South Korea.

In overseas markets, European stocks edged higher today, 18 May 2015. Key benchmark indices in UK, France and Germany were up 0.53% to 0.97%.

Meanwhile, as per reports, Greece reportedly made last week's payment to the International Monetary Fund by the narrowest of margins.

Asian stocks were mixed today, 18 May 2015. Key benchmark indices in South Korea, Japan, Indonesia and Taiwan were up 0.03% to 0.80%. Key benchmark indices in China, Hong Kong and Singapore were off 0.28% to 1.03%.

In Japan, the latest data showed that Japan's core machinery orders, excluding often volatile orders for electric power companies and ships, rose 2.9% in March from the previous month.

US stocks closed mostly higher Friday, 15 May 2015, with the S&P 500 index setting a record for the second straight session. Investors grappled with weaker-than-expected economic reports which left the timing of the Federal Reserve's next rate hike still uncertain for investors.

Meanwhile, the president of the Chicago Fed Charles Evans today, 18 May 2015, said in a speech prepared for delivery to a conference in Stockholm, Sweden that he sees no compelling reason for the US Federal Reserve to be in a hurry to tighten financial conditions. Evans said that the case could even be made that the US economy needed more accommodation at the moment, according to reports. Evans is one of only two Fed officials who think the US central bank should wait until 2016 to increase interest rates.

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First Published: May 18 2015 | 1:09 PM IST

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