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Nifty hovers around 7900; infra, metal, auto stocks rally

11:01

The News International Team

11:30 am Buzzing: Shares of oil marketing companies are extending the spectacular rally seen yesterday as crude prices are still at 14-month low. HPCL, BPCL and IOC are up 3-4 percent each intraday on Tuesday. Goldman Sachs bullishness on the sector is also adding to the euphoria.

The brokerage sees almost no losses on diesel after September price hike and expects greatest upside for HPCL and BPCL with improving marketing margins. As losses on retail diesel sales are now down to Rs 0.8 per litre, Goldman Sachs estimates it  to fall to Rs 0.3 per litre after the price hike on September assuming oil prices and diesel cracks remain around current levels.

“This implies we could effectively be done with the monthly cycle of diesel price increases in next two months and diesel will be market-priced,” it says in a report.

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The market is going steady with the Nifty hovering around 7900, up 24.25 points at 7898.50. The Sensex is up 81.01 points at 26471.97. About 1369 shares have advanced, 911 shares declined, and 98 shares are unchanged.

Capital Good, Metal and Auto indices are lending support to the market. Sesa Sterlite, Dr Reddy’s Labs, M&M, Axis Bank and Hindalco are top gainers in the Sensex. Among the losers are TCS, Sun Pharma, HDFC, Cipla and ONGC.

Brent crude edged up towards USD 102 a barrel, but stayed near a 14-month low reached in the previous session on weak demand and easing concerns over risks to supply. Investors are worrid over conflict in Iraq eased, and as higher Libyan oil output added to already ample supplies.

Iraqi and Kurdish forces recaptured Iraq’s biggest dam from Islamist militants with the help of US air strikes to secure a vital strategic objective in fighting that threatens to break up the key oil producing country.

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