Oil and Natural Gas Corporation, which drills oil wells, has been on investors’ radar for some time now. The title still climbed 13% on Monday. Since war broke out in Europe, the stock has increased by 20%.
A similar story is playing out in some stocks in the sugar sector. Balrampur Chini Mills was one of the day’s biggest gainers, rising more than 5% on higher crude oil prices. The company produces ethanol which is blended with fuel. Rising crude will encourage petroleum marketing companies to blend more ethanol now, to keep pump prices low.
Shares in technology company 3i Infotech have been stuck at 5% of the upper circuit after receiving an order worth Rs 12.85 crore from the Rajasthan State Pollution Control Board (RSPCB).
The company said the work includes designing, developing, implementing and maintaining the integrated e-governance 2.0 solution for the Rajasthan State Pollution Control Board.
IT companies are already in demand thanks to the falling rupee, which helps exporting companies generate more rupee revenue. Therefore, they act as defensive bets amid the market drop.
Repaint the area?
JK Cement said it will also enter the paint business now, after JSW and Grasim. The opportunity to build a valuable business continues to attract new entrants to the industry. The success of Asian Paints, Nerolac and Berger Paints are prime examples.
Although, historically, new entrants have struggled to grow due to distribution and brand barriers. Thus, analysts believe that this will not pose a significant threat to existing large players but could impact regional players.
“Although we do not expect new entrants to have a significant impact on Asian Paints’ growth prospects or market share for 3 to 4 years, competitive intensity could deteriorate profitability, performance and industry valuations, at the margin,” said Jaykumar Doshi of Kotak Securities.
Nevertheless, JK Cement’s decision was not favorable to the market. The stock ended down 11%, also partly affected by rising energy prices.