Sensex, Nifty off day`s high; oil & gas stocks in demand

The benchmark indices came off day`s high in mid-morning trade, dragged by auto stocks. However, banks and oil & gas stocks continued to support the indices. The Nifty slipped below the 17,850 mark.

At 11:30 IST, the barometer index, the S&P BSE Sensex, climbed 298.38 points or 0.50% at 59,900.22. The Nifty 50 index jumped 94.40 points or 0.53% at 17,840.30.

In the broader market, the S&P BSE Mid-Cap index rose 0.58% while the S&P BSE Small-Cap index gained 0.41%.

The market breadth was strong. On the BSE, 2,215 shares rose and 1,035 shares fell. A total of 105 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,926.77 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 800.91 crore in the Indian equity market on 6 January 2022, provisional data showed.

F&O Ban:

RBL Bank (down 1.14%) is under the F&O ban for Friday, 7 January 2022. The securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Buzzing Index:

The Nifty Oil & Gas index rose 0.90% to 7,676.50. The index lost 0.90% in the last trading session.

Oil India (up 8.67%), Oil & Natural Gas Corporation (ONGC) (up 2.39%), Gujarat State Petronet (GSPL) (up 2.06%), Hindustan Petroleum Corporation (HPCL) (up 1.51%) and Reliance Industries (RIL) (up 1.07%) were the top gainers in the Oil & Gas segment.

RIL rose 1.07%. The company`s arm Reliance Retail purchased 25.8% stake in Dunzo. Dunzo, India`s leading quick commerce player raised $240 million in its latest round of funding. Reliance Retail will own 25.8% stake on a fully diluted basis with an investment of $200 million. Post this deal, Reliance Retail will be the largest shareholder in Dunzo.

The capital will be used to help Dunzo be the largest quick commerce business in the country. It will also enable instant delivery of essentials from a network of micro warehouses. Dunzo is also seeking to expand its B2B business vertical to enable logistics for local merchants in Indian cities.

In addition to the funding, Dunzo and Reliance Retail will also enter into certain business partnerships. Dunzo will enable hyperlocal logistics for the retail stores operated by Reliance Retail, further adding onto Reliance Retail`s omni-channel capabilities. Dunzo will also facilitate last mile deliveries for JioMart`s merchant network.

Stocks in Spotlight:

Macrotech Developers rose 0.63%. The realty major Lodha Group, listed as Macrotech Developers reported strong operational update for Q3 FY22. The company`s pre-sales stood at Rs 2,608 crore jumping 40% on year on year in Q3 FY22. The company said this was its best quarterly performance in last 12 quarters. Additionally, the realtor`s UK investment projects had pre-sales of GBP 191 million (approx. Rs 1,910 crore) in the quarter.

Collections for Q3 FY22 stood at Rs 2,127 crore, rising 44% year-on-year (Y-o-Y). On a sequential basis, collection grew by 11% from Rs 1,912 crore posted in Q2 FY22. The realtor said it entered into Joint Development Agreement for six additional new project during the quarter for 4.8 million sq. ft. of saleable area in the Eastern Suburbs of Mumbai. The realty major also reduced its net debt to Rs 9,925 crore in Q3 FY22 for India business from Rs 12,477 crore in Q2 FY22 and Rs 16,625 crore in Q3 FY21.

Kalyan Jewellers India gained 1.25%. The company said its consolidated revenue growth for the recently concluded quarter was about 17%. Kalyan Jewellers said it clocked year-on-year revenue growth of over 15% for its India operations during the recently concluded quarter.

The company said it witnessed strong momentum in footfalls and revenue over the past four quarters commencing from the same period in the last financial year (Q3 FY2021). The positive traction continued during this festive season on the back of further easing of COVID-related restrictions across all its markets in India and the Middle East, supported by increased levels of vaccination and continued buoyancy in consumer sentiments.

The firm said its gross margin improved sequentially for the recently concluded quarter. Key drivers for margin expansion have been improvement in both studded share and share of revenue from non-south markets. The company also witnessed improvement in the Gold Savings Scheme (GSS) enrollments sequentially, as well as when compared to the same period in the previous year.

Global Markets:

Most Asian stocks advanced on Friday, following heavy losses for some regional markets in the previous trading day, as investors continue to assess the impact of a potentially faster-than-expected policy tightening by the U.S. Federal Reserve.

US stocks fell on Thursday to end a day of choppy trading, following the massive tech sell-off in the previous session. The Dow Jones Industrial Average fell 170.64 points, or 0.47%, to 36,236.47, the S&P 500 lost 4.53 points, or 0.10%, to 4,696.05 and the Nasdaq Composite dropped 19.31 points, or 0.13%, to 15,080.87.

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