Nifty above 16,080 mark, oil & gas stocks correct

The benchmark indices traded with small gains in the mid-morning trade. The Nifty traded above the 16,080 mark. Oil & gas stocks corrected after gaining in the past three sessions.

At 11:30 IST, the barometer index, the S&P BSE Sensex, was up 107.74 points or 0.20% to 53,994.35. The Nifty 50 index gained 36.05 points or 0.22% to 16,094.35.

In the broader market, the S&P BSE Mid-Cap index rose 0.59% while the S&P BSE Small-Cap index added 0.39%.

The market breadth was positive. On the BSE, 1,831 shares rose and 1,247 shares fell. A total of 152 shares were unchanged.

Economy:

India`s factory output, measured in terms of Index of Industrial Production (IIP), witnessed a growth of 19.6% in May 2022. IIP grew 7.1% in April 2022. The manufacturing sector recorded a growth of 20.6% in May. The mining sector rose by 10.9% and the electricity sector climbed 23.5%.

India`s headline retail inflation rate, as measured by the Consumer Price Index (CPI), stood at 7.01% in June 2022 from 7.04% in May 2022, data released on 12 July 2022 by the Ministry of Statistics and Programme Implementation showed.

Buzzing Index:

The Nifty Oil & Gas index declined 0.71% to 7,374.80. The index witnessed profit booking after rising 2.73% in the past three trading sessions.

Adani Total Gas (down 3.88%), GAIL (India) (down 1.76%), Aegis Logistics (down 0.6%), Reliance Industries (down 0.55%) and Petronet LNG (down 0.42%), Indian Oil Corporation (down 0.35%), Oil & Natural Gas Corpn (down 0.28%), Indraprastha Gas (down 0.2%) declined.

On the other hand, Castrol India (up 3.74%), Gujarat Gas (up 2.05%) and Bharat Petroleum Corporation (up 1.13%) advanced.

The Organization of the Petroleum Exporting Countries (OPEC) forecast that world oil demand will rise further next year, but at a slightly slower rate than in 2022, with consumption supported by better containment of the COVID-19 pandemic and still-robust global economic growth.

In a monthly report, the OPEC said it expects world oil demand to rise by 2.7 million barrels per day (bpd) in 2023. This year`s growth forecast was left unchanged at 3.36 million bpd.

Stocks in Spotlight:

Deepak Nitrite rose 0.94% after the specialty chemicals maker on Tuesday (12 July) said that its entire plant situated at Nandesari in Gujarat has restarted operations. Deepak Nitrite has received directions from Gujarat Pollution Control Board (GPCB) revoking the closure order for three months and permitted the company to start manufacturing activities at the entire plant except affected parts of Nitrite section.

Sterling and Wilson Renewable Energy tumbled 6.06% after the company reported a consolidated net loss of Rs 353.91 crore in Q1 FY23 as against a net loss of Rs 76.12 crore in Q1 FY22. Revenue from operations rose 1% YoY to Rs 1,206.93 crore during the quarter.

Shilpa Medicare rallied 5.33% after the company said that its newly commissioned facility for manufacture and testing of Orodispersible films and Transdermal systems situated at Dabaspet, Bengaluru in Karnataka, has been issued GMP Certificate by UK Medicines and Healthcare products Regulatory Agency (MHRA). The facility was inspected by MHRA from 18 April 2022 to 20 April 2022.

Global Markets:

Asian stocks advanced across the board on Wednesday as China releases trade data, and the Bank of Korea and Reserve Bank of New Zealand hike rates. Thailand`s stock exchange was closed for a holiday.

The Bank of Korea raised rates by 50 basis points for the first time, bringing the rate to 2.25%. That`s in line with analyst expectations.

The Reserve Bank of New Zealand also increased rates by 50 basis points to 2.5%.

U.S. stocks dropped on Tuesday as worries over global economic growth dented investor appetite for risk assets. PepsiCo kicked off the corporate earnings season on Tuesday, reporting a better-than-expected quarterly profit and revenue and raising its revenue outlook for the year.

The U.S. will report consumer price index data later Wednesday, and markets are expecting hot inflation, which would keep the Fed firmly on its hiking path.

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