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Sensex, Nifty extend gains; ICICI, RIL, Axis Bank rally 2%

14:00

The News International Team
Live Market Commentary

02:40pm Ashok Leyland surges 4%

Ashok Leyland has reported total sales of 8,331 units in August, up 17 percent compared to 7,847 units in a year-ago period.

Light commercial vehicle sales increased by 14 percent to 2,501 units from 2,111 units during the same period. Medium and heavy commercial vehicle sales grew by 18 percent to 5,830 units.

02:30pm Kingfisher in focus

State-run United Bank of India today became the first lender to declare debt-ridden Kingfisher Airlines and its promoter Vijay Mallya as wilful defaulters.

“We have declared Vijay Mallya and three other directors of Kingfisher Airlines as wilful defaulters,” United Bank of India Executive Director Deepak Narang told PTI. The Grievance Redressal Committee (GRC) of the bank has declared directors Ravi Nedungadi, Anil Kumar Ganguly and Subash Gupte as wilful defaulters.

Post this declaration, these persons and the entity would not be able to borrow from the bank in future. They would also lose director-level positions in companies. Criminal proceeding could also be initiated against these persons if warranted.

02:20pm Bharti Infratel in News

Bharti Infratel is eyeing the acquisition of Vodafone and Idea towers in India. Sources suggest that the telecom tower infrastructures provider is in initial talks with both the companies for part or complete buyout while exploring various fundraising options.

Currently, Vodafone has 25,000 towers in India whereas Idea has 9,400 towers. However, valuation of towers is yet to be assessed.

Bharti Infratel will need to raise capital to a minimum of Rs 5,000 crore for the deal whereas, its current cash flows stands above Rs 2,000 crore.

Bharti Infratel intends to scale up in terms of number of towers in their presence and eventually, leave those towers to Idea and Vodafone as a cost-saving tool.

The timeline for completion of the deal has been set to November but may take slightly longer due to high valuations.

02:10pm Market Expert

Manish Chokhani, director, Enam Holdings is looking to utilize every correction to get deployed in the Indian equity market. In an interview to CNBC-TV18, he said the market will need the support of India Inc’s earnings to scale to higher levels from hereon.

“We do need earnings support to come through, all the predictions that I am seeing are of 15-20 percent growth, which means on a trailing basis this market will be trading at 20 times trailing earnings. So in a matter of 18 months, the market should be 50 percent higher from here and that is if nothing blows up in the world,” he added.

02:00pm Equity benchmarks gained further in afternoon trade with the Sensex climbing 221.16 points to 26859.27 and the Nifty rising 69.95 points to 8024.30 led by banks, auto, capital goods and oil & gas stocks.

The broader markets consistently outperformed benchmarks with the BSE Midcap and Smallcap indices gaining over a percent. About 1810 shares have advanced, 1000 shares declined, and 127 shares are unchanged.

Raamdeo Agarwal of Motilal Oswal expects the Nifty to hit 10000 before the elections next year.

Maruti Suzuki and Hero Motocorp topped the buying list, up 4 percent each followed by ICICI Bank, L&T, Reliance Industries, Axis Bank, ONGC, State Bank of India, Bharti Airtel, Cipla, GAIL, Coal India, Tata Power and Hindalco Industries with 1-3 percent.

Global economic data came in weak. European markets like Germany and France marginally in the red after the euro zone manufacturing PMI falling to a 13-month low of 50.7 while Spanish manufacturing data has slowed down for second straight month. Also in Asia, China manufacturing PMI slipped to 50.2 versus an 18-month high of 51.7 in July.

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