The News International Team
11:55 am Airport woes: Delhi International Airport Ltd (DIAL), a subsidiary of GMR Infrastructure, has exited from cargo services at the Delhi airport by selling its entire stake to India Infrastructure Fund for Rs 29 crore.
“Accordingly as per the terms of definitive agreement and on completion of condition precedents, DIAL on March 16, 2015 has sold and transferred its entire holding of 1,09,20,000 equity shares of face value of Rs 10 each, to India Infrastructure Fund-II for Rs 26.20 per share and has received the total consideration of Rs 28.60 crore,” GMR Infra said in a regulatory filing to the BSE.
Last month DIAL had entered into a definitive agreement to sell its entire stake of 26 percent of the equity capital of Delhi Cargo Service Centre Pvt.Ltd which operates cargo services at Delhi airport.
11:30 am Market outlook: The market is likely to consolidate near term, but investors should use every weakness to buy shares, says Madhu Kela, Chief Investment Strategist, Reliance Capital.
In an interview to CNBC-TV18, he advises investors not to be pessimistic as a deep correction looks unlikely.
Concerns about a rate hike by the US Federal Reserve, and slower than anticipated recovery in the economy as well as corporate earnings have been keeping investors edgy over the last couple of weeks.
Kela says retail investors are still waiting on the sidelines, but expects domestic fund flows to be a major upside trigger for the market. This and a pick up in earnings growth will drive re-rating, he says.
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Investors seem to be on a buying spree on Dalal Street. The Sensex is up 299.88 points or 1 percent at 28737.59 and the Nifty is up 89.35 points or 1 percent at 8722.50. About 1450 shares have advanced, 755 shares declined, and 158 shares are unchanged.
Sesa Sterlite, Hindalco, Tata Motors, Dr Reddy’s labs and Cipla are top gainers in the Sensex while Bharti Airtel, Infosys and GAIL are among laggards.
Meanewhile, the SBI Composite Index, an indicator for tracking India’s manufacturing activity, has shown a significant growth in output both in terms of month-on-month and yearly basis in March. The monthly index has shown robust growth of 58.5 in March 2015, from 47.6 in February 2015, signalling the highest pace of growth in last 48 months.
“Robust recovery in the month on month index may be attributed to seasonal factors as March sequential momentum is always higher,” SBI said in a research note.
The monthly index had slipped from 52.6 in January 2015 to 47.6 in February 2015. The yearly SBI Composite Index for March 2015 inched up to 54.6 from 53.5 in February 2015, a 6-month high. The Index captures two components of the manufacturing cycle – month-on-month and year-on-year-growth on a scale of 0 to 100.