Indian benchmark equity indices opened in the green on Monday on positive cues from the Asian markets.
At the opening bell on Monday, the BSE Sensex was by 412 points, while the Nifty50 rose 110 points.
However, both benchmarks have since then pared the gains.
At the time of writing, the BSE Sensex was largely unchanged from the previous session at 81,622.94, while the Nifty50 index was also largely flat at 24,987.90.
Global cues bolstered by strong US jobs data
Asian equity benchmarks rose on Monday after strong US jobs data released on Friday dispelled fears of a recession.
Japan’s Nikkei led regional equity gains with a 2% rally earlier in the session, aided by the softer yen.
Australia’s stock benchmark was 0.1% higher, while South Korea’s Kospi rose 0.3%.
Titan pares opening gains
Titan shares opened nearly 2% higher on Monday, and are now currently 2% lower.
The share price of Titan fell even after the company reported positive earnings for the September quarter. Domestic operations grew by nearly 25% on-year led by significant pick-up in consumer demand momentum after the government cut import duty of gold.
ONGC shares slump more than 3%, Shipbuilding, railways stocks down 7%
ONGC’s stock slumped more than 3% as crude oil prices fell on Monday, while investors booked profits after last week’s gains.
Oil prices declined on Monday as traders waited for Israel’s response to Iran’s attack.
As there have been no fresh escalations in tensions, oil prices took a breather.
ONGC is an oil exploration and production company, and India’s largest crude oil producer.
When oil prices decline, it hurts the profitability of the upstream company.
Meanwhile, shipbuilding and railways stocks plunged on Monday.
Shares of Garden Reach Shipbuilders were down 5.8%, while those of Cochin Shipyard slipped 4.4%.
Rail Vikas Nigam Limited’s stock fell 6.4% and shares of Railtel plunged 6.5% on Monday.
Additionally, shares of Vodafone Idea were down for the fifth consecutive trading session on Monday.
The stock has fallen over 7.5% on Monday.
Vodafone Idea’s stock has slipped 31.74% on a month on month basis, and as much as 46.94% in 2024.
Shares of NBCC and ITC jump
Shares of NBCC (India) surged more than 6% on Monday after the public sector undertaking trades ex-bonus.
In August, NBCC had announced that from October 7, shareholders listed in the company’s books as of Monday will be eligible for the bonus share issuance.
Meanwhile, shares of ITC Limited gained more than 2% on Monday after receiving approval from the National Company Law Tribunal (NCLT) for the demerger of its hotel business.
The approval was granted on Friday from the Kolkata bench of the NCLT.
Investors will be keeping a close eye on the policy meeting of the Reserve Bank of India that commences on Monday.
The market expects the RBI to maintain the repo rate at 6.5%, marking the 10th consecutive meeting with no change.
The post Sensex, Nifty50 Rally at opening bell on strong global cues; ITC and NBCC surge, Titan and ONGC decline appeared first on Invezz
