Gift Nifty Gains, ONGC Eyes US Approval, BPCL Plans Major Refining Expansion: Today’s Top Market Movers

The Indian stock market witnessed a strong positive trend as benchmark indices closed higher on Friday, fueled by positive sentiment across regional markets. This upward movement in the market came on the back of US economic data, which helped ease concerns over growth prospects. As investors await the latest domestic quarterly growth figures, the BSE Sensex closed 231 points higher, reflecting a 0.3% increase, while the NSE Nifty also saw an uptick, closing 84 points higher at 0.3%.

Among the top gainers were Cipla, Mahindra & Mahindra (M&M), and Bajaj Finserv, driving the market upwards. Conversely, Tata Motors, Reliance Industries, and ITC were among the top losers, pulling back some of the gains. The BSE MidCap index showed robust performance, ending 0.5% higher, while the BSE SmallCap index rose by 0.8%, indicating a broad-based buying interest.

Sectoral performance was mixed, with the healthcare, realty, and auto sectors seeing significant buying interest. However, FMCG stocks lagged behind, remaining in the red. In commodities, gold prices for the latest contract on the Multi Commodity Exchange (MCX) traded marginally lower at Rs 72,142 as of Friday’s market close.

Gift Nifty Points to a Muted Start

As of 7:30 AM today, the Gift Nifty was trading 25 points higher at 25,412, indicating a cautious start for the Indian markets. The sentiment remains positive, albeit with some hesitation as traders digest the recent market highs and await further economic data.

Stocks to Watch: City Union Bank and Natco Pharma

Among the buzzing stocks today, City Union Bank is expected to attract attention after its shares surged over 4% on 30 August, driven by heavy trading volumes. The Tamil Nadu-based bank recently opened a new branch in Trichy, bringing its total branch count to 807, a development that has been well-received by investors.

Natco Pharma is also in the spotlight after its shares jumped nearly 5% to Rs 1,569 during Friday’s intraday trading on the BSE. The surge came after the company submitted an abbreviated new drug application (ANDA) with the US Food and Drug Administration (FDA) for a generic version of Novartis’ Tabrecta, a drug used to treat metastatic non-small cell lung cancer. This development is seen as a significant step forward for Natco Pharma, potentially opening up new revenue streams in the competitive US market.

ONGC Nears US Approval for Venezuela Oil Fields

ONGC Videsh Limited (OVL), the overseas arm of Oil and Natural Gas Corporation (ONGC), is in advanced talks with the US government to obtain a waiver that would allow it to regain control of its oil fields in Venezuela. This move could unlock dividends worth approximately $600 million, which have been stuck due to US sanctions against Venezuela.

OVL holds stakes in the San Cristobal and Carabobo-1 oil fields in Venezuela, where current production stands at 12,000 barrels per day (bpd). The company expects to ramp up production to 45,000 bpd over the next four to five years. The potential waiver from the US would not only allow OVL to resume operations but also to lead these projects, marking a significant milestone for the company’s international operations.

In a related development, Indian oil companies, including ONGC, have been exploring the possibility of using approximately $600 million in stranded dividends from Russian investments to purchase oil from Russia, showcasing the complexities and strategic maneuvers in the global energy market.

M&M Collaborates on Anti-Drone Solutions

Mahindra & Mahindra (M&M) has taken a strategic step forward in the defense technology sector by signing a non-binding memorandum of understanding (MoU) with Sentrycs to develop anti-drone solutions for both civilian and military applications in India. This partnership aligns with the Government of India’s Make in India initiative and will focus on the transfer of technology and the manufacturing of radio frequency-based counter-drone solutions.

The proposed anti-drone system is designed to be autonomous and integrated, featuring a command and control (C2) module that enables the detection, tracking, identification, and mitigation of drone threats. This technology is expected to play a crucial role in safeguarding critical infrastructure in urban areas and in broader military applications, enhancing M&M’s position in the high-tech defense sector.

BPCL to Expand Refining and Petrochemical Capacity

Bharat Petroleum Corporation Limited (BPCL), a state-run oil company, has announced a massive investment plan of Rs 750 billion over the next five years to expand its refining and petrochemical capacities. This investment is part of BPCL’s strategy to meet the growing energy demands of India’s booming economy, where petroleum product consumption is projected to rise by 4-5% annually.

A key project under this expansion plan is the ethylene cracker project at BPCL’s Bina refinery in Madhya Pradesh. This project, with a gross cost of Rs 490 billion, involves the expansion of the refinery’s capacity from 7.8 million metric tons per annum (MMTPA) to 11 MMTPA. The increased capacity will primarily serve the feedstock needs of BPCL’s petrochemical plants, aligning with the company’s vision to integrate refining and petrochemical operations.

In addition to expanding its traditional energy business, BPCL is also focusing on green energy initiatives. The company has allocated Rs 100 billion for investments in green energy projects, including a 5 MW electrolyzer plant at Bina Refinery and a green hydrogen refueling station in Kochi, as part of India’s National Green Hydrogen Mission. These initiatives underscore BPCL’s commitment to transitioning towards a more sustainable energy future.

In conclusion, The Indian stock market continues to show resilience, with key sectors like healthcare, realty, and auto driving gains. As companies like ONGC and BPCL make strategic moves in international markets and green energy, the overall sentiment remains cautiously optimistic. Investors will be closely watching the developments around Gift Nifty and key buzzing stocks like City Union Bank and Natco Pharma as the market navigates through global economic uncertainties and domestic growth prospects.