Updated March 27th, 2024 at 10:54 IST

Reliance Industries, oil marketing firms propel Indian shares higher

At 10:27 am, the blue-chip NSE Nifty 50 index climbed 0.64% to reach 22,144.70, while the BSE Sensex rose by 0.65% to 72,942.63.

Reported by: Business Desk
Stock market news | Image:Republic
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Stock market news: Indian shares surged with heavyweight Reliance Industries at the forefront following an optimistic target price set by Goldman Sachs. Concurrently, oil marketing companies benefited from a drop in crude oil prices, igniting hopes of sustained refining margins.*

At 10:27 am, the blue-chip NSE Nifty 50 index climbed 0.64 per cent to reach 22,144.70, while the BSE Sensex rose by 0.65 per cent to 72,942.63.

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According to Pramod Gubbi, co-founder of Marcellus Investment Managers, the Nifty's consolidation around the 22,000 mark is anticipated to persist in the near term, with the upcoming earnings season from mid-April likely to serve as the next directional catalyst. Gubbi further remarked on the attractiveness of the large-cap segment from a valuation standpoint, predicting continued reallocations from small- and mid-caps to keep the benchmarks resilient.

Amidst the broader market sentiment, small-cap and mid-cap indices advanced by 0.6 per cent and 0.5 per cent respectively today. However, their performance has been mixed for the month, with small-caps declining by 4.8 per cent and mid-caps by 0.75 per cent, contrasting with the Nifty's 0.5 per cent rise.

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All major sectors registered gains, with the energy and oil & gas sectors leading the charge with increases of 1 per cent and 1.4 per cent respectively. Notably, Reliance Industries saw a notable uptick of 2.3 per cent, reaching 2,948.40 rupees, after Goldman Sachs raised its price target to a Street-high 3,400 rupees, citing favorable valuations and potential earnings growth.

Furthermore, oil marketing firms such as Bharat Petroleum, Hindustan Petroleum, and Indian Oil each gained around 2 per cent, buoyed by the continuous decline in crude oil prices, which bolsters their refining margins.

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In other sectors, ABB India witnessed a significant surge of 6 per cent to Rs 6,286.80, following UBS's elevation of its price target to a Street-high Rs 7,550. This revision was attributed to the company's sustainable earnings and growth prospects in its electrification business.

Meanwhile, metals processor Gravita India saw a remarkable increase of 10.5 per cent after Kotak Institutional Equities initiated coverage with a "buy" rating, hailing it as a leader in the domestic recycling industry.

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(With Reuters inputs.)

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Published March 27th, 2024 at 10:54 IST