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Benchmarks trade with decent gains; oil & gas stocks decline

Published on May 27, 2022 11:27

The domestic equity barometers traded with decent gains in mid-morning trade. Positive cues from other Asian indices boosted sentiment. The Nifty traded tad above the 16,250 mark. Oil & gas stocks declined across the board.

At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 306.46 points or 0.56% to 54,558.99. The Nifty 50 index added 88.85 points or 0.55% to 16,259.00.

In the broader market, the S&P BSE Mid-Cap index rose 1.06% while the S&P BSE Small-Cap index gained 0.91%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 2,052 shares rose and 1,014 shares fell. A total of 130 shares were unchanged.

The most recent minutes of the Fed`s meeting calmed fears of the American central bank turning more hawkish and thereby, contracting worries of aggressive rate-tightening policy by the US Fed. The minutes of Fed`s May meeting released on Wednesday confirmed two more 50-basis point hikes each in June and July, but policymakers also suggested the potential for a pause later in the year.

Buzzing Index:

Oil & Gas stocks were trading with losses. The Nifty Oil & Gas index fell 120.05 points or 1.55% to 7,644.15. The index had advanced 0.69% to end at 7764.20 yesterday.

Hindustan Petroleum Corporation (down 2.47%), Oil India (down 1.65%), Petronet LNG (down 1.59%) and Reliance Industries (down 1.53%) were the top losers.

Further, Gujarat State Petronet (down 1.51%), GAIL (India) (down 1.26%), Mahanagar Gas (down 0.84%), Bharat Petroleum Corporation (down 0.79%) and Adani Total Gas (down 0.49%) edged lower.

Meanwhile, Castrol India (up 2.03%) and Gujarat Gas (up 0.41%) managed to outperform.

ONGC dropped 4.48%. The state-run oil major said it has drawn up a comprehensive roadmap to further intensify its exploration campaign, allocating a capital expenditure of about Rs 31,000 crore in the next three fiscal years during FY 2022-25. This is 150% of its exploration expenditure of Rs 20,670 crore in the last three fiscals during FY 2019-22, it said in a statement on Thursday.

Stocks in Spotlight:

Zee Entertainment Enterprises (ZEEL) rose 2.63%. The company reported 34% fall in consolidated net profit to Rs 181.93 crore in Q4 FY22 as against Rs 275.73 crore in Q4 FY21. Net sales jumped 18.2% to Rs 2,322.90 crore for the quarter ended 31 March 2022 from Rs 1,965.82 crore recorded in the corresponding quarter previous year.

AstraZeneca Pharma India jumped 9.36%. The pharmaceutical company posted a 2.6% rise in net profit to Rs 27.98 crore in Q4 FY22 from Rs 27.28 crore posted in Q4 FY21. Net sales jumped 10% year on year to Rs 231.96 crore in Q4 FY22.

Global markets:

Asian markets rose across the board on Friday, with investors monitoring shares of Alibaba in Hong Kong after the Chinese tech giant posted better-than-expected fourth-quarter earnings on Thursday.

Chinese authorities held an unprecedented nationwide meeting via teleconference on Wednesday in a bid to bolster an economy battered by Covid, with Premier Li Keqiang warning of difficulties �even greater than the severe shock of the pandemic in 2020.�

Wall Street closed sharply higher on Thursday after optimistic retail earnings outlooks and waning concerns about overly aggressive interest rate hikes by the Federal Reserve put investors in a buying mood.

On the data front, revised figures showed the world`s biggest economy contracted at an annualised rate of 1.5% in the first quarter, slightly worse than the previous estimate of 1.4%.

The number of Americans filing new claims for unemployment benefits fell last week. Initial claims for state unemployment benefits decreased 8,000 to a seasonally adjusted 210,000 for the week ended May 21, the Labor Department said on Thursday.

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