RIL’s better-than-expected Q3 numbers keep Sensex and Nifty in green

Extending gains for the third straight session, Indian benchmarks- Sensex, Nifty were trading over 0.20% in the late morning session on the back of a smart rally in Reliance Industries shares, after the company posted better-than-expected third quarter earnings. On the global front, most of the Asian equity indices were trading in green. Back home, the traders were seen piling up position in Oil & Gas, Capital Goods and Power while selling was seen in Auto, IT and Bankex sectors. In scrip specific development, RIL traded jumped 52-week high, after the company has reported 24% jump in the third quarter net profits, the first increase after four quarters of declining returns, on the back of record earnings from oil refining business. L&T Finance Holdings gained on reports that the company is in advanced stages of negotiations to buy Morgan Stanley's wealth management business in India. State Bank of India soared after the bank stated that Central Board of the Bank has approved a capital infusion of Rs 3004 crore by the government through preferential allotment of shares in the current fiscal year ending March 2013. Hindalco Industries surged on reporting that the 1.5-million-tonne alumina refinery project of Utkal Alumina International (UAIL), a subsidiary of the Kumar Mangalam Birla's Hindalco, is finally taking off by the end of March or first week of April. The NSE Nifty and BSE Sensex were managing to hold their psychological 6,000 and 20,000 levels respectively.

The market breadth on BSE was positive; advances: declines in the ratio of 1199:841.

The BSE Sensex is currently trading at 20106.39 up by 67.35 points or 0.34% after trading in a range of 20163.38 and 20078.06. There were 15 stocks advancing against 15 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.24% and Small cap index was up by 0.42%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.20%, Capital Goods up by 1.07%, Power up by 0.71%, Metal up by 0.64% and PSU up by 0.30%. While, Auto down by 0.38 , IT down by 0.27%, Bankex down by 0.21% , Health Care down by 0.17% and TECk down by 0.07% were the top losers on the index.

The top gainers on the Sensex were RIL up by 3.99%, BHEL up by 2.78%, Maruti Suzuki up by 1.46%, Gail India up by 1.35% and Dr Reddys Lab up by 1.00%.

On the flip side, Cipla was down by 1.29%, Tata Motors was down by 1.14%, Sun Pharma was down by 1.08%, Mahindra & Mahindra was down by 1.00% and HDFC Bank was down by 0.91% were the top losers on the Sensex.

Meanwhile, the 18-month-old arrangement of India’s euro payments for Iranian crude oil imports through a Turkish bank may come an end as a new set of US sanctions against the Islamic nation comes into force from February 6. The aim of February sanctions measure is for Tehran’s oil revenues to become largely shackled within any country buying oil from Iran.

The new US Treasury sanctions, which go into effect from February 6, bar banks from transferring Iran’s oil revenues from importing nations to Tehran, force Iran to keep its oil revenues in local bank accounts in countries purchasing its oil. The sanctions, if implemented, would mean that National Iranian Oil Co (NIOC) will have to essentially keep all the revenue it earns from selling oil to Indian refiners in UCO or any other permitted local bank. These can be used for buying permissible goods and services.

However, if the euro payments were ended and all of the payments are made in rupees, UCO account balance will swell overnight and the Iran will be encouraged to widen imports of wheat and other commodities. With US sanctions barring sale of any defence or technology intensive equipment, Iranian imports from India will continue to remain low. Also, New Delhi has not allowed Iranians to invest in its securities or debt.

Since July 2011 India has been using euros to clear most of its purchases of Iranian oil through Ankara-based Turkiye Halk Bankasi. As much as 55 per cent of the $10 billion oil imports from Iran are settled through Halk Bank, while the rest of the payments are made in rupees in Kolkata-based UCO Bank.

The S&P CNX Nifty is currently trading at 6,076.55 up by 12.15 points or 0.20% after trading in a range of 6,094.35 and 6,069.40. There were 26 stocks advancing against 24 declines on the index.

The top gainers of the Nifty were Reliance Industries up by 3.97%, BHEL up by 2.89%, Cairn up by 1.53%, JP Associate up by 1.50% and Maruti Suzuki up by 1.41%.

On the flip side, UltraTech Cement down by 1.77%, Ambuja Cement down by 1.48%, ACC down by 1.26%, Tata Motors down by 1.23%, and IDFC down by 1.22% were the major losers on the index.

Most of the Asian equity indices were trading in green; Shanghai Composite rose 3.24 points or 0.14% to 2,320.31, Hang Seng added 27.80 points or 0.12% to 23,629.58, Straits Times surged 13.56 points or 0.42% to 3,224.78, KOSPI Composite was up by 0.13 points or 0.01% to 1,987.98 and KOSPI Composite was up by 1.08 points or 0.05% to 1,988.81.

On the flip side, Jakarta Composite declined 10.42 points or 0.23% to 4,455.06, KLSE Composite tumbled 38.17 points or 2.28% to 1,638.27 and Nikkei 225 dropped 104.93 points or 1.00% to 10,804.33.