(Informative post by mcharts)
Nifty has had a huge uptrend movement in last three months climbing over 500 points and this bull run rally faced lot of factors which pulled nifty down the chart time and again. Despite various negative factors stocks from few sectors have remained constantly in support of nifty’s uptrend momentum. This was visible in performance of both the individual stocks and the sector’s index as well. Two such notable sectors would be nifty energy and nifty metals.
Although the growth of sector in terms of value has been very little in last two months energy stocks have played a vital role in bull momentum as they have remained relatively neutral to market swings on local and global cues. Nifty energy index shows over 5% growth on average in last three months. This growth was made possible thanks to bullish movement of various stocks under the index however the stocks to be noted are Tata Power Company, Gail (India) Ltd, Bharat Petroleum Corporation Ltd & Indian Oil Corporation.
These stocks have shown an average increase in value of: 1) Tata Power – 1.86%, 2) Gail – 4.40%, 3) BPCL – 18.39% & 4) Indian Oil Corporation – 3.82% for the duration of 1st July’17 to 19th September’17. This strong uptrend momentum of these stocks can be contributed to positive AGM outcomes and quarterly financial updates. We could also view the growth of nifty value in index to be result of positive quarterly financial reports for the first quarter of 2017-18.
Each of the stock has had significant factors that have helped them in their bullish momentum. For Tata Power Company a few factors that could be listed are increase in power generation capacity for renewable energy, increase in consolidated revenue and profit after tax by 2% & 126% over last quarter.
For Gail India Ltd the factors were commencing of 100% construction work on KKMBPL pipeline, over 295% increase in profit after tax on quarter on quarter basis for Q 1 FY 2017-18 and 81% increase in gross margin, update on part time change in directorate (non-official board of directors replacement).
For Bharat Petroleum Corporation Ltd the factors that helped with bullish momentum are board’s decision to combine Petronet CCK Ltd to BPCL for better control and integration of operation mechanisms and Government awarding Maharatna status to the company.
For Indian Oil Corporation Ltd the factors are Change in directorate of company as independent director ceased to be director of board, acquisition of 50% equity in Gujarat State Petroleum Corporation for access to 5-MMTPA LNG Terminal in Gujarat and first stage of approval for expansion of Gujarat Refinery and few other approvals to update various units to bolster production capacity.
The above mentioned factors contributed as crucial support to help nifty energy index maintain its bull momentum and contribute to Nifty’s three month long uptrend movement across index chart.