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Wednesday, August 10, 2022

India Stocks Review:Sharp fall in crude prices boosts FMCG, auto cos

Informist, Wednesday, Jul 6, 2022

 

By Ankika Biswas

 

MUMBAI – Benchmark indices rose over 1% today as key sectors such as automobiles and fast-moving consumer goods witnessed strong buying, as the overnight slide in crude oil prices improved investor sentiment towards them.

 

On Tuesday, Brent crude oil futures slid nearly 11% to $101.10 per barrel, the lowest level since late April, due to concerns over demand taking a hit amid recession fears. Today, despite some recovery, they hovered around $103 per barrel.

 

This, coupled with easing palm oil prices, fuelled strong gains in FMCG stocks on hopes of improved profitability in the sector. Shares of Britannia Industries and Hindustan Unilever were among the top gainers on the Nifty 50.

 

Additionally, the fall in crude oil prices, along with a sharp slide in base metal prices, led to strong gains in the automobiles pack. The Nifty Auto index rose nearly 3% today, and was one of the top sectoral indices.

 

The other beneficiaries were paint manufacturers, given that crude oil derivatives are used as raw materials in the industry. 

 

Due to the gains in major frontline stocks, the Nifty 50 managed to briefly top its initial hurdle of 16000 points today. It closed 1.1% higher at 15989.80 points after rising to 16011.35 points. The Sensex closed 1.2% higher at 53750.97 points after testing 53819.31 points earlier.

 

With their sharp gains, domestic headline indices bucked the weak trend displayed by their Asian peers. Key indices in Japan, China, South Korea and Taiwan fell over 1-2% today amid persistent worries of an economic slowdown.

 

Even as the domestic market witnessed strong investor enthusiasm today, the Street awaits the minutes of the US Federal Reserve’s June meeting, due later today. In June, the central bank had opted for a 75-basis-point rate hike and hinted at more drastic measures to tame rising inflation.

 

“It was more of a relief rally, as the markets have been falling in the last few sessions due to worries of a global recession and falling crude oil prices,” said Shrikant Chouhan, equity research head (retail), Kotak Securities. “A quick intraday correction is not ruled out if the index trades below 15900.”

 

Among other big gainers were banks and financial stocks, following strong quarterly updates by several industry majors. Shares of Bajaj Finance rose over 4% due to strong customer addition and loan growth in Apr-Jun. 

 

On the other hand, upstream oil companies witnessed sharp selling, with Oil and Natural Gas Corp losing 5% and emerging as the worst hit on the Nifty 50.

 

* Among Nifty 50 stocks, 40 rose and 10 fell

* Among Sensex stocks, 25 rose and 5 fell 

* On the NSE, 1,221 stocks rose, 846 fell and 70 were unchanged

* On the BSE, 1,827 stocks rose, 1,472 fell and 137 were unchanged

* Nifty FMCG: Up 2.6%; Nifty Auto: Up 2.6%; Nifty Energy: Down 0.6%

BSE                                                National Stock Exchange
Sensex: 53750.97 points, up 616.62 pts (1.2%)      Nifty 50: 15989.80, up 178.95 pts (1.1%)

S&P BSE Sensitive Index                            Nifty 50
Lifetime High: 62245.43 (Oct 19)                 : Lifetime High: 18604.45 (Oct 19)
Record Close High: 61765.59 (Oct 18)             : Record Close High: 18477.05 (Oct 18)

2022 1st day close: 59183.22 (Jan 3)             : 2022 1st day close: 17625.70 (Jan 3)
2022 Closing High: 61308.91 (Jan 17)             : 2022 Closing High: 18308.10 (Jan 17) 
2022 Closing Low: 51360.42 (Jun 17)              : 2022 Closing Low: 15293.50 (Jun 17)
2022 High (intraday): 61385.48 (Jan 17)          : 2022 High (intraday): 18321.55 (Jan 17)

2022 Low (intraday): 50921.22 (Jun 17)           : 2022 Low (intraday): 15183.40 (Jun 17)
2021 Closing High: 61305.95 (Oct 14)             : 2021 Closing High: 18338.55 (Oct 14) 
2021 Closing Low: 46285.77 (Jan 29)              : 2021 Closing Low: 13634.60 (Jan 29)
2021 High (intraday): 61353.25 (Oct 14)          : 2021 High (intraday): 18350.75 (Oct 14)
2021 Low (intraday): 46160.46 (Jan 29)           : 2021 Low (intraday): 13596.75 (Jan 29)-

2020 Closing High: 47751.33 (Dec 31)             : 2020 Closing High: 13981.95 (Dec 30)
2020 Closing Low: 25981.24 (Mar 23)              : 2020 Closing Low: 7610.25 (Mar 23)
2020 High (intraday): 47896.97 (Dec 31)          : 2020 High (intraday): 14024.85 (Dec 31)
2020 Low (intraday): 25638.90 (Mar 24)           : 2020 Low (intraday): 7511.10 (Mar 24)
2019 High (intraday): 41809.96 (Dec 20)          : 2019 High (intraday): 12293.90 (Dec 20)
2019 Low (intraday): 35287.16 (Feb 19)           : 2019 Low (intraday): 10583.65 (Jan 29)
2018 High (intraday): 38938.91(Aug 28))          : 2018 High(intraday): 11760.20 (Aug 28)
2018 Low (intraday): 32483.8 (Mar 23)            : 2018 Low (intraday): 9951.9 (Mar 23)
2017 High (intraday): 34005.37 (Dec 26)          : 2017 High(intraday): 10515.10 (Dec 26)

 

End

 

US$1 = 79.30 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Namrata Rao

 

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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Source: Cogencis

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