BENGALURU: Energy stocks lifted Indian shares higher on Monday after a cut in windfall tax on crude, while other Asian markets gained as US data helped soothe fears of a recession in the world’s largest economy.
The NSE Nifty 50 index was up 0.23% at 24,599.4 as of 9:50 a.m. IST, and the S&P BSE Sensex rose 0.14% to 80,540.75.
The MSCI Asia ex-Japan rose nearly 1.1% as easing inflation and readings of robust US retail spending boosted sentiment. Twelve of the 13 major sectors logged gains.
Energy and oil & gas rose about 1.5% and 2%, respectively, led by a 3% gain in Oil & Natural Gas Corp.
Other oil upstream companies such as Oil India and Mangalore Refinery also added about 2.5% each, after government cut the windfall tax on crude to 2,100 Indian rupees ($25) per tonne from 4,600 rupees with effect from Aug. 17.
Oil-to-telecom conglomerate Reliance Industries added 1.2%.
NTPC gained 2% after brokerage CLSA termed it the best play on energy transition in India, reiterating its “outperform” rating.
ONGC and NTPC were among the top five Nifty 50 gainers by percentage.
“While the earnings season has been weak, the earnings forecasts for Nifty 50 companies and wider universe remain stable,” said analysts, led by Seshadri Sen of Emkay Global.
“We think the market is fairly valued and a significant near-term upside would come only if the earnings momentum returns,” they added, but also flagged an increase in the frequency of profit-booking.
The broader small-caps and mid-caps gained 1.4% and 0.75%, respectively.
IT powers Indian shares to first weekly gain in three as US recession fears wane
Food delivery company Zomato gained 2.5% after brokerage UBS reiterated “buy” and raised target price to 320 rupees from 260 rupees, citing strong growth in quick commerce and food delivery segments.
Orders at the company’s quick commerce unit Blinkit hit an all-time high on Sunday.
Source: Brecorder
