scorecardresearch
Market crash: Why Coal India, ONGC, Hindalco are the top Nifty gainers today

Market crash: Why Coal India, ONGC, Hindalco are the top Nifty gainers today

ONGC, Coal India and Hindalco were the only Nifty gainers in early trade. The energy shares rose up to 4.23% at a time market was trading deep in the red.

During the current session, Sensex crashed 1,791 points intraday to 52,542 and Nifty plummeted 504 points to 15,741. During the current session, Sensex crashed 1,791 points intraday to 52,542 and Nifty plummeted 504 points to 15,741.

Indian equity market suffered a big oil shock on Monday after brent crude oil prices touched $130 per barrel. Sensex and Nifty extended their losing streak for the fourth straight session as Russia-Ukraine conflict continued for over 10 days.

Sensex has plunged 3,705 points and Nifty has lost 1,052 points in four sessions, taking into account today's intraday fall too. During the current session, Sensex crashed 1,791 points intraday to 52,542 against the previous close of 54,333.  Similarly, Nifty plummeted 504 points to 15,741 against the previous close of 16,245.

All Sensex stocks were trading in the red in early trade today.  However, among Nifty stocks, ONGC, Coal India and Hindalco were the only gainers in early trade. The energy shares rose up to 4.23 per cent at a time market was trading deep in the red.

Also read: Rs 6 lakh crore investor wealth wiped out as crude oil shock roils Sensex, Nifty

Here's a look at the top Nifty gainers in early trade today.

Coal India: Shares of Coal India gained 3.75 per cent to Rs 187.80 against the previous close of Rs 181 on Nifty. State-owned Coal India, which is among the country's major power producers, is expected to benefit from the sanctions the West is likely to impose on Russia's energy sector especially, oil and gas.

Reports said European countries are now expected to reduce their dependence on Russian gas, increasing the consumption of thermal coal.

Share Market LIVE: Sensex crashes over 1100 pts, Nifty below 16,000 amid weak global cues

Financial Services firm Motilal Oswal said, "We believe several European countries are likely to resume thermal power plants as a medium-term arrangement before completely moving away from Russian gas until their goal of 100 per cent renewable source of power is achieved."

In CY19, global thermal coal trade stood at 987 mt of which Russia supplied 170 mt and accounted for 19 per cent of world exports. Russia accounted for 47 per cent of EU coal imports.

ONGC: The share of state-owned energy producer rose over 4 per cent amid a market crash today. ONGC stock gained 4.23 per cent to Rs 172.75 against the previous close of Rs 165.25 on NSE. On BSE, the stock rise 4.54 per cent intraday to Rs 172.65.

Rising brent crude oil prices and possible sanctions on Russian oil and gas will benefit the market sentiment around the energy producer. The company, which also produces natural gas, will benefit from the likely sanctions on Russian gas producers. The shortage of natural gas after the sanctions will also benefit the Indian producer.  

Hindalco: The shares of Aditya Birla group firm gained 3.13 per cent to Rs 602.10 in early trade on NSE against the previous close of Rs 583.80.  

The aluminium producer is likely to benefit from the sanctions imposed on Russia.  Russia's exports constituted 9 to 10 per cent of global aluminium exports in 2020.  However, sanctions on the Russian aluminium producer RUSAL will lead to tightening of supply in the global market.

This would benefit aluminium producers across the world as they would raise prices amid the short supply of the metal.

Published on: Mar 07, 2022, 12:07 PM IST
Posted by: Aseem Thapliyal, Mar 07, 2022, 12:00 PM IST