Home / Business / Money / Nifty below 8800, Sensex weak; banks drag, Coal India down

Nifty below 8800, Sensex weak; banks drag, Coal India down

09:15

The News International Team

9:50 am Big move: Shares of Jet Airways soared 5.5 percent while beleaguered SpiceJet jumped 7 percent intraday as aviation turbine fuel (ATF) is slashed by a steep 11.3 percent which now costs lesser than diesel.

The price of ATF, or jet fuel, in Delhi was cut by Rs 5,909.9 per kilolitre, or 11.27 per cent, to Rs 46,513.02 per kl, oil companies announced.

Last month’s reduction saw the ATF price slip to Rs 52.42 a litre, below Rs 58.91 a litre cost of petrol in Delhi. Post this cut it costs Rs 46.51 per litre and is cheaper than diesel that sells at Rs 51.52 per litre.

ATF has a higher octane than petrol and diesel is a heavier fraction in the distillation process. Traditionally, auto fuels being of lesser quality than ATF, would cost less. ATF attracts an excise duty of 8 percent. Jet fuel constitutes over 40 percent of an airline’s operating costs and the price cut will ease the financial burden of cash-strapped carriers.

9:40 am Brokerage: Brokerage house CLSA has initiated coverage on Adani Enterprises with a buy rating and a price target of Rs 750 following the proposal for a 4-way demerger announced by the company on Friday.

“We see Adani Enterprises’ plan to de-merge into four entities to create value by eliminating hold company discount and bring focus on some of its under-appreciated businesses. De-merger shall also aid in fund raising for Adani’s growth businesses on a leaner balance-sheet,” said the CLSA note to clients.

9:30 am  Buzzing: Shares of both Sun Pharma and Ranbaxy jumped 3 percent each, touching all-time high of Rs 942 per share and Rs 728 respectively. The US Federal Trade Commission has approved the pharma major’s plan to buy Ranbaxy on the condition that it divests one antibiotic product to avoid anti-competitive impact in the US market.

Torrent Pharma will acquire Ranbaxy’s minocycline business in the US. Generic minocycline tablets are used to treat a wide array of bacterial infections, including pneumonia, acne, and urinary tract infections.

The Sun-Ranbaxy merger now needs approval from just the Punjab and Haryana High Court. The court will be hearing on the merger on February 2. Sun Pharma had agreed to buy Ranbaxy from Japan’s Daiichi Sankyo in April.

 Don’t miss: 10 things that made or burnt your money in January

The market is still under selling pressure on Monday morning trade. The Sensex is down 62.01 points at 29120.94 and the Nifty slips 10.95 points at 8797.95. About 495 shares have advanced, 312 shares declined, and 168 shares are unchanged.

Coal India is down over 2 percent, while Dr Reddy’s Labs, ICICI Bank, SBI and HDFC Bank are losers in the Sensex. Among the gainers are Sun Pharma, ONGC, Wipro, Tata Power and Sesa Sterlite.

The Indian rupee opened lower by 13 paise at 61.99 per dollar versus Friday’s closing value of 61.86 a dollar.

Dollar steady against a basket of major currencies. The dollar index is above 94. Meanwhile, US treasury prices jumped on Friday with long term yield hitting record lows after poor GDP data.

Agam Gupta of Standard Chartered said, “We should see supply of dollars from FIIs today as the Coal India OFS got approximately USD 1 billion of bids from these accounts. Should see exporters sell dollars on upticks towards 62.20. The spot should range between 61.85-62.25/dollar today.”

Asian markets are negative in morning trade. In commodities, oil prices declined after a sharp rally on Friday where Nymex had surged 8 percent as unions called a strike at US oil and chemical plants on the weekend, cutting some of the gains made late last week.

Gold rose over 2 percent to USD 1280 an ounce.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...