Indices bounce back, oil & gas stocks advances

The benchmark indices bounced back and traded with decent gains in the mid morning trade. The Nifty was hovering above 16,500 level. Oil & gas and IT shares supported the indices while FMCG, healthcare and financial services stocks were under pressure. Negative global cues dented investors sentiment.

At 11:30 IST, the barometer index, S&P BSE Sensex was up 144.76 points or 0.26% to 55,459.82. The Nifty 50 index rose 23.50 points or 0.14% to 16,546.25.

In the broader market, the S&P BSE Mid-Cap index fell 0.57% while the S&P BSE Small-Cap index gained 0.22%.

The market breadth was positive. On the BSE, 1,764 shares rose while 1,318 shares fell. A total of 152 shares were unchanged.

Buzzing Index:

The Nifty Oil & Gas index rose 1.24% to 7,894.10. The index rose 0.11% in two trading sessions.

Among the components of the Nifty Oil & Gas index, Reliance Industries (up 2.3%), Oil India (up 2.1%), Adani Total Gas (up 1.55%), Gujarat Gas (up 1.49%) and Bharat Petroleum Corporation (up 1.32%) were the top gainers.

Among the other gainers were Aegis Logistics (up 0.61%), GAIL (India) (up 0.6%), Oil & Natural Gas Corpn (up 0.57%), Gujarat State Petronet (up 0.16%) and Petronet LNG (up 0.07%).

On the other hand, Castrol India (down 2.52%), Indraprastha Gas (down 2.22%) and Indian Oil Corporation (down 1.06%) edged lower.

In the commodities market, Brent crude for August 2022 settlement was down $1.98 or 1.70% at $ 114.31 a barrel. The losses came after the media reported Saudi Arabia is ready to pump more oil if Russian output declines.

Reliance Industries advanced 2.3%. Reliance Brands (RBL) and Plastic Legno SPA have signed a joint venture arrangement through which RBL will acquire a 40% stake in Plastic Legno SPA`s toy manufacturing business in India. This investment by RBL serves a dual purpose, bringing in vertical integration for RBL`s toy business and helping diversify the supply chain with a long-term strategic interest in building toy manufacturing in India.

Stocks in Spotlight:

Eicher Motors fell 0.47% after the company recorded total motorcycles sales of 63,643 units in May 2022 as against 27,294 units in May 2021. While the company sold 53,835 units (up 137% YoY) of models with engine capacity upto 350cc, sales of models with engine capacity exceeding 350cc was 9,808 units (up 115% YoY). Motorcycles sales in the international business rose by 40% to 10,118 units in May 2022 over May 2021.

Hero MotoCorp fell 3.01% after the company said that the company had sold 486,704 two-wheeler units in May 2022 as against 183,044 units sold in May 2021. Sequentially, this translates into a growth of 16% over the month of April 2022, when the company had sold 418,622 units. Total domestic sales in May 2021 stood at 4,66,466 unit in May 2022, which is significantly higher as compared with 1,59,561 units sold in May 2021. Exports during the period under review declined 13.8% YoY to 20,238 units. Hero MotoCorp stated that the sales in May 2021 were impacted due to the resurgence in Covid-19 cases and subsequent lockdowns.

Welspun Corp shed 0.43% after the company`s associate company, East Pipes Integrated Company for Industry (EPIC) in Saudi Arabia signs a contract with the Saline Water Conversion Corporation (SWCC). The contract is to supply and deliver steel pipes for a water transmission project. The project is for a period of 12 months with the financial impact reflecting in East Pipes` financial statements in FY 2022 and FY2023.

Global Markets:

The US Dow Jones index futures were down 33 points, indicating a negative opening in the US stocks today.

Most of the Asian shares declined on Thursday, amid worries over high inflation and the threat of recession.

US stocks started June with declines amid choppy trading. The Dow shed 176.89 points, or 0.54%. The S&P 500 fell 0.75%, and the Nasdaq Composite retreated 0.72%.

The number of April job openings, released Wednesday, declined sharply from the previous month � but the findings suggest the job market remains tight. Further, the Institute for Supply Management said its manufacturing PMI came in at 56.1 for May, up from 55.4 the month before.

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