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Sensex gains 1%, midcaps strong; ICICI, Hindalco up 3-4%

12:00

The News International Team

12:59pm Market Update

The Sensex climbed 284.43 points or 1.06 percent to 26994.56 and the Nifty jumped 85.10 points or 1.06 percent to 8114.90 led by banks, capital goods, metals, power, select auto and technology stocks.

About 1954 shares have advanced, 585 shares declined, and 76 shares are unchanged on the Bombay Stock Exchange.

12:55pm Intellect interview

Intellect Design Arena, the demerged BFSI focused product company from Polaris, listed on the stock exchanges today. The stock was trading almost 5 percent higher after listing at Rs 69.25 per share.

Arun Jain, CMD, Intellect Design Arena, expects a 20 percent growth in the company in coming years. The growth has been hit by lower sales investments in the last 3 years, he said.

In an interview to CNBC-TV18, Jain said that 47 percent revenue of the company comes from developed markets and that products are accepted by more than 20 clients. The company has been able to increase its sales investments to 27 percent from 17-18 percent of revenue and has been increasing it by USD 10 million every year, Jain said, adding that he expects gross margins to improve to 60 percent in 3 years.

12:40pm SKS Microfinance on buyers’ radar

Shares of SKS Microfinance rallied 5 percent on issuing commercial papers of an aggregate amount of Rs 70 crore on December 16, 2014.

These commercial papers have been rated A1+ by a leading rating agency, said the company in its filing.

Instruments with this rating are considered to have a very strong degree of safety regarding timely payment of financial obligations and such instruments carry the lowest credit risk.

The aggregate commercial paper outstanding as on date is Rs 150 crore, it added.

This was the second issuance of commercial papers in December. The microfinance lender had issued commercial papers of an aggregate amount of Rs 50 crore on December 01, 2014, which also had been rated A1+ by a leading rating agency.

12:20pm SpiceJet in focus

Troubled airline SpiceJet today resumed operations after being forced to cancel over 150 flights with oil marketing companies refusing to refuel its planes forcing the budget carrier to pay Rs three crore last evening to buy jet fuel.

“So far, the operations are going as scheduled,” airport sources said, as the airline flew at least five flights out of Delhi till 1000 hours to Mumbai, Jaipur, Port Blair, Kochi and Varanasi.

The airline came out of the brink today after all its flights were grounded for about ten hours yesterday before it made part payment of Rs three crore to oil companies enabling it to partly resume operations.

Of the 243 listed flights, it claimed to have operated 75 across the country after 1600 hours yesterday.

Ajay Singh, one of the original promoters of SpiceJet, met with Civil Aviation Secretary V Somasundaran fuelling speculation about the former planning to invest in the carrier once again.

Singh refused to reply to questions on whether he would invest, but said SpiceJet had a “lot of potential”, reports PTI.

12:00pm Market Check

The market maintains strong uptrend in noon trade despite some profit booking at higher levels. The Sensex climbed 267.52 points or 1 percent to 26977.65 and the Nifty jumped 78.05 points or 0.97 percent to 8107.85 while the BSE Midcap and Smallcap indices rallied 2-2.5 percent.

About 1864 shares have advanced while 545 shares declined on the Bombay Stock Exchange.

Market experts remain bullish despite the recent correct in the equity markets. Adrian Mowat of JPMorgan says he is not worried about a little bit of volatility in emerging markets. Nirmal Jain too is betting on India, saying 2015 can emerge as a good year for the market.

Gail, BHEL, Hindalco Industries, Tata Power, ICICI Bank and Jindal Steel topped the buying list, up 3-4.5 percent while Hero Motocorp, HDFC, HUL and Reliance Industries are only losers on Sensex.

In the broader space, Intellect Design Arena, the demerged BFSI focused product company from Polaris, listed on the stock exchanges today. The stock traded almost 5 percent higher after listing at Rs 69.25 per share.

Sentiment today is boosted by the Cabinet passing the Constitutional Amendment Bill on Goods and Services Tax on Wednesday. The GST bill is likely to be tabled in the ongoing winter session now. Likely beneficiaries include companies from the logistics sector such as Gati and Snowman Logistics. Kotak said organised companies in unorganised sectors will also benefit, which are Exide Industries, Amara Raja, Pidilite, Marico amongst others.

Globally, Asian equities are mostly higher on US Fed’s decision to be patient in raising interest rates. Brent crude jumped above USD 61 per barrel.

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