India’s stock market opened higher on Monday with Sensex and Nifty beginning at fresh record highs amid the optimism over third-quarter earnings. BSE Sensex gained 102.39 points or 0.29% to start at 35,613.97 with the shares of ONGC rising the most among the 31 stocks of the key index while NSE Nifty lost 11.5 points to begin at 10,883.2. Shares of Asian Paints, Axis Bank, Dewan Housing Finance, Havells India, Rallis India, Vakrangee and Justdial will be in close watch ahead of their respective third-quarter earnings later today. Going ahead in a holiday-shortened week ahead, earnings of blue-chip companies such as Axis Bank and Maruti Suzuki as well as derivatives expiry will likely to steer the domestic equities.
Companies which are scheduled to announce their Q3 results this week include Axis Bank, Maruti Suzuki India, Canara Bank, Idea Cellular, Coal India, and Dr Reddy’s Laboratories. The benchmark Sensex surged 152.43 points to hit a lifetime peak of 35,664.01 and Nifty ticked up 31.75 points to hit a fresh record high of 10,926.45.
Shares of ONGC zoomed as much as 6.4% to the day’s high of Rs 206 nearing its 52-week high price of Rs 212 after state-owned Oil and Natural Gas Corp announced the acquisition of government’s entire 51.11% stake in oil refiner HPCL for Rs 36,915 crore, paying a premium of over 10%. ONGC will pay Rs 473.97 per share for 77.8 crore shares of the government in Hindustan Petroleum Corp Ltd (HPCL), the company said in a stock exchange filing. The price it is paying is 14% higher than Friday’s closing price of HPCL and over 10% of the 60-day weighted average of the scrip. Meanwhile, ONGC has increased its first ever debt-raising plans by 40% to as much as Rs 35,000 crore to fund its Rs 36,915-crore acquisition of Hindustan Petroleum (HPCL). On the other hand, shares of HPCL were lost 3.49% to the day’s low of Rs 402 on BSE.
Shares of Reliance Industries was the second-biggest gainer among the Sensex stocks, advanced 2.53% to the day’s high of Rs 952.9 after the oil-to-telecom conglomerate Reliance Industries reported its highest quarterly net profit of Rs 9,423 crore on record earnings from petrochemical business and telecom company Reliance Jio posting its first-ever profit. RIL reported a rise of 25.1% in the consolidated net profit to Rs 9,423 crore, or Rs 16 per share, in the October-December quarter as compared to Rs 7,533 crore, or Rs 12.8 a share, in the same period a year earlier.
Shares of Adani Ports, Yes Bank, Coal India, HDFC Bank, HDFC, Tata Motors were the other notable gainers on Sensex while ICICI Bank, Wipro, Asian Paints, Bharti Airtel, Axis Bank and SBI lost up to 1.7%. Shares of JP Associates 12.44% to the day’s high of Rs 24.4 after the real estate firm’s standalone net loss narrowed to Rs 148.1 crore in the third-quarter of current fiscal on lower finance cost and other expenses. Jaiprakash Associates net loss stood at Rs 1,095.02 crore in the year-ago period, the debt-laden company said in a regulatory filing.
Shares of Wipro shed 3.27% to the day’s low at Rs 317.7 after India’s third-largest IT firm posted a fall of 8.4% in the consolidated net profit to Rs 1,931.3 crore for the quarter ended 31 December but said it has been witnessing an improving trajectory of growth.
Earlier on Friday last week, the key equity index Nifty breached the psychological level of 10,900 for the first time on Friday led by an uptick in over a dozen heavyweight shares. The blue-chip stocks of ICICI Bank, Reliance Industries, Indian Oil Corporation, HDFC Bank, Adani Ports, Indiabulls Housing Finance, Bajaj Finance, Tata Consultancy Services, State Bank of India, Yes Bank, Vedanta, L&T, Kotak Mahindra Bank, ITC, Axis Bank, HDFC, Bharat Petroleum Corporation and Hindustan Petroleum Corporation contributed the most in the upsurge of the index. In the intraday trades, Nifty 50 amassed as many as 89.85 points to hit a fresh peak of 10,906.85 before settling up 77.7 points or 0.72% at 10,894.7 on Friday. In the last 5-day trading session, Nifty got appreciated by 213.45 points or 1.99% to conclude at 10,894.7. The 30-share BSE Sensex rallied 251.29 points or 0.71% to finish at 35,511.58.