Reliance Industries flares up on BSE; US, China, auto sales to influence markets this week

Reliance Industries Ltd. (RIL) shares shot up on a lacklustre trading day on Monday, gaining as much as 6.20 percent in early trade to Rs 1,256, apparently riding on the sentiments generated by Reliance Jio's plans and impact on rivals.

The BSE Sensex was down 18 points at 28,875 at around 10.45 am. The key factors for markets this week include Donald Trump's Congressional address, India's automobile sales for February and signals from China.

Read: How will Reliance Jio Prime affect Airtel, Vodafone, Idea?

A brokerage had said in its morning update that the RIL scrip is likely to sustain favour among investors. "Among large caps, Reliance Industries should continue to see investment interest," Motilal Oswal Securities said in its February 27 outlook.

SpiceJet shares were up 3.37 percent to Rs 74 at around 11.15 am on the BSE and Jet Airways was trading 3.7 percent higher at Rs 438.

Read: Man arrested for molesting 2 air hostesses on Jet Airways

Axis Bank was trading 2.60 percent down at Rs 514 amid all the merger buzz and subsequent denial by CEO Shikha Sharma. 

Read: Axis Bank CEO Shikha Sharma uses interesting analogy to deny merger rumours

Stocks that hit new 52-week high on Monday include state-owned Vijaya Bank, Edelweiss Financial Services, JP Associates, RBL Bank, GMR Infrastructure and Jindal Steel.

NTPC was almost flat at Rs 165, while Inox Wind was down 0.11 percent to Rs 178. The company was one of the four successful bidders in the first ever, tariff-based auction for wind power conducted last Friday.

 The week is bound to be influenced by both global and domestic factors.

"Amid reports that the White House intends to send outlines of the fiscal 2018 budget to Capitol Hill as early as March 13, markets await further clarity from President Trump's address to a joint session of Congress on Tuesday, where he is likely to discuss infrastructure plans, tax reform, healthcare and immigration," Nomura analysts Mixo Das, Yiran Zhong and Rohit Thombre wrote in their note on Monday. 

Another X-factor is China, the world's second-largest economy.

"China's National People's Congress convenes in Beijing next weekend, with Premier Li expected to reinforce the issue of supply-side reforms ahead of the crucial 19th National Congress of the Communist Party later this year. Official commentary on growth, inflation and deleveraging will be watched closely," the three Nomura analysts said.

On the domestic front, the Narendra Modi government will be announcing its second official GDP estimates for FY2017 on Tuesday, while automobile companies will be declaring their February sales numbers later in the week.

The first GDP estimate had pegged FY2017 growth at 7.1 percent, while the Economic Survey released a day before the Union Budget had projected the Indian economy within a range of 6.5-6.75 percent. The NCAER forecast is 6.9 percent.

The first GDP estimate was made without factoring in the impact of demonetisation.

The Indian rupee hit a 15-week high of 66.69 to the US dollar on Monday, reportedly on sustained buying of Indian equities by foreign portfolio investors (FPIs). In the current month, FPIs had bought equities worth Rs 9,359 crore and debt worth Rs 5,279 crore on a net basis till last Thursday (February 23).

"The intra-day range is seen between 66.55-66.85 levels," IFA Global said in a note.

The sovereign gold bond scheme (SGB) opened on Monday and will be available for subscription till March 3, offering gold bonds at Rs 2,893 representing one gram of gold.