Market Movers: Hindustan Oil jumps 7%; steel stocks rally on improved outlook

Processed gas is being exported through the ONGC pipeline network to its Hazira Gas Processing Terminal. ONGC then redelivers B-80 gas into the flagship HVJ pipeline owned by GAIL. GSPC then offtakes the B-80 gas to deliver it to the end consumers through its vast pipeline network. We expect the entire production and sales operations to stabilise over the next few weeks.

“Before commencement of sales, gas produced from well D-2 was processed to meet the specifications and packed into ONGC pipeline from May 31, 2022, onwards. Subsequently, the Gas Transportation Agreement (GTA) between ONGC and HOEC was executed on June 03, 2022,” the company said.

The stock closed the day up over 7 per cent at Rs 210.15.

Steel rallying?
Many steel stocks ended the day with gains amid the reopening of China's economy, which is one of the top consumers of the commodity. Tata Steel was the biggest Nifty gainer, up 1.66 per cent. Jindal Steel and Jindal Stainless fared even better, rising about 2 per cent each.

"Metal prices had crashed following the widespread Chinese lockdowns. To make matters worse, the government imposed export duties on certain categories like steel and iron ore. The depressed domestic prices led to a near 30 percent crash in stock prices of metal majors. Now the situation is slowly improving,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“Chinese reopening has improved supply chains and also raised the demand for metals. So prices are looking up. But so long as export duties remain, metal stocks are unlikely to rally beyond a point. But it is a fact that stock prices had over-reacted on the downside. This may be partially corrected."

ANDA approval
Shares of Lupin closed with gains after the company received tentative approval from the United States Food and Drug Administration (FDA) for its Abbreviated New Drug Application (ANDA) Ivacaftor Tablets, 150 mg, to market a generic equivalent of Kalydeco Tablets, 150 mg.

This product will be manufactured at Lupin’s Nagpur facility in India.

Ivacaftor Tablets had estimated annual sales of $109 million in the US. It is a medication used to treat cystic fibrosis in people with certain mutations in the cystic fibrosis transmembrane conductance regulator gene.