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Sensex, Nifty surge 1%; Bank Nifty hits record high

12:00

The News International Team

12:50 pm Interview: Aviation turbine fuel or ATF prices coming down is a much needed relief and a welcome move for airlines, says Sanjiv Kapoor, COO of SpiceJet . Jet fuel prices are down almost 23 percent since the peak in June 2014. With this, the annual fuel bill will reduce by Rs 700 crore, he adds. He says that the troubled airline is working on capitalisation plans for the company. The low-cost airline will fly 230 flights per day till the company is recapitalised. SpiceJet’s market share has fallen to 14 percent from 21 percent.

12:30 pm Market outlook: Equities are likely to give a 13-15 percent compounded return over the next three years, but fixed income may give better returns over the next six months, says Manish Gunwani, Senior Fund Manager, ICICI Prudential AMC. He advises investing in financial services and capital goods stocks to play the economic recovery theme. He feels valuations of auto stocks are not as attractive as they were a year back. Gunwani expects aggregate corporate earnings to grow 15-16 percent this year and 20 percent next year. He sees the rupee depreciating slightly or hovering around current levels.

Don’t miss: SRF up 10% on acquisition of Global DuPont Dymel for $ 20m

The market is celebrating new year in style with some massive gains. The Sensex is up 340.23 points or 1 percent at 27847.77 and the Nifty up 101.05 points or 1 percent at 8385.05. About 1746 shares have advanced, 788 shares declined, and 824 shares are unchanged.

HDFC is still up 4 percent while BHEl, Axis Bank, Tata Motors and ICICI Bank are top gainers in the Sensex. Among the losers are HUL, Hero and Bajaj Auto.

The banking stocks surged, with the Bank Nifty Index hitting a record high on hopes of faster reforms in the sector ahead of a two-day industry meet that starts today.

The one-of-a-kind retreat, spearheaded by Prime Minister Narendra Modi along with Reserve Bank of India (RBI) Governor Raghuram Rajan and Finance Minister Arun Jaitley, will include all top bankers to address issues such as consolidation, bad loans, financial inclusion and capital needs.

The Bank Nifty index surged as much as 1.4 percent to a record high of 19,010.60, surpassing the previous peak of 18,923.60 on December 23.

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