Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.
This is an entirely free service. No payments are to be made.On Thursday, share markets in India opened on a positive note and ended the day in green.
The BSE Sensex closed higher by 96 points to end the day at 34,427 mark. While the broader NSE Nifty ended the day higher by 39 points to end at 10,565.
Among BSE sectoral indices, metal stocks rose the most by 4.5%, followed by capital goods stocks at 1.1%. Tata Steel and Yes Bank were among the top gainers.
Tata Steel share price is likely to be in focus today after a leading financial daily reported that the Tata Group company is likely to acquire a 75% stake in debt ridden Bhushan Steel.
As per the news, the company will be paying Rs 1.8 billion to acquire 75% of the paid-up share capital by issuing 1.2 billion new shares as part of its plan to salvage the debt-laden steel company.
HPCL share price and BPCL share price are among the stocks to watch today as oil prices continue to rise unabated.
--- Advertisement --- A Proven Way to Profit from This Market Crash The news might tell you that it is time to panic and start selling your stocks. But how would you feel if we told you that there is a proven way to profit from these uncertain times? Well, we have discovered 5 Safe Stocks that could potentially profit from this market meltdown. We are sure you are intrigued. Click here to find out which stocks we are talking about. ------------------------------ |
Data released by the Directorate General of Civil Aviation showed India's aviation sector witnessed its highest passenger growth in 32 months in March as more than 11.6 million Indians took air transport for their travels.
As per the data, airline passenger traffic grew 28%, compared with the same month last year. This was seen on account of strong capacity addition.
The growth in passenger traffic in the world's fastest-growing aviation market was led by Air India, GoAir, Air Asia, and Vistara. All the four airlines reported strong growth in passenger traffic by growing above the industry average of 28%.
However, the number of fliers for InterGlobe Aviation Ltd, the parent of IndiGo, fell 27% as the airline cancelled 935 flights due to instances of technical glitches in their Pratt & Whitney engines. While this was marginally below the industry rate, it stood higher compared to the previous month for the company.
Passenger load factor, a measure of capacity utilisation, increased for all the major airline companies last month. SpiceJet Ltd reported the highest passenger load factor of 95% and now has reported a PLF of more than 90% for the thirty-fifth consecutive month.
Note that India's aviation industry is on a high-growth trajectory. India's domestic air traffic has seen a prolific growth of 20-25% during 2015 and 2016. And in 2017, it tapered to 17.4%. However, for the first time, domestic air traffic crossed an important landmark of 100 million passengers in a calendar year. Air travel has recorded double-digit growth for 40 consecutive months, thanks to low fares, the addition of new flights/destinations, and overall growth in the economy.
What's foreseeable for India's aviation traffic in 2018 is some pressure on the back of the consistent rise in crude oil prices. Earlier this year, Brent crude oil briefly breached US$70 per barrel and touched its highest level since December 2014. Crude prices have been driven up by production curbs in OPEC nations and Russia, as well as by robust demand on the back of healthy global economic growth.
Oil prices are closely monitored by the Indian air carriers, as aviation turbine fuel is their single largest input cost. A sharp rise in the cost of fuel puts pressure on margins, and consequently an increase in air fares.
Although air travel is becoming the new normal, investors need to understand the industry dynamics before buying up aviation stocks.
Crude oil prices are witnessing buying interest today, and have remained close to highs touched the previous day that were last seen in late 2014. Gains are seen as US crude inventories declined and as top exporter Saudi Arabia is expected to keep withholding supply to prop up the market.
Last week too, crude oil was headed for its biggest weekly advance in more than eight months on speculation that tensions in the Middle East may lead to supply disruptions, reinforcing a buy call on commodities by Goldman Sachs Group Inc.
The risk of conflict in Syria, as well as ongoing tensions between Saudi Arabia and Iranian-backed rebels in Yemen, has raised concerns over supply security in the energy-rich region.
While OPEC said its output last month fell to the lowest in a year, with worldwide inventories set to decline significantly later this year, the International Energy Agency (IEA) sees a second wave of shale revolution in the US.
How this pans out remains to be seen. We will keep you updated on all the developments from this space.
Note that crude oil prices have been witnessing a rising trend of late. However, this is not good news from India's perspective.
As we wrote in one of the editions of The 5 Minute WrapUp...
You can read the entire article here.
For information on how to pick stocks that have the potential to deliver big returns, download our special report now!
Read the latest Market Commentary
| |
The BSE Sensex ended the day down by 67 points, while the NSE Nifty closed down by 22 points.
Here's a list of most active small-cap stocks today. It also includes information on BSE Smallcap index and the broader benchmark indices.
Here's a list of 5 stocks that gained the most in the BSE Mid-Cap Index today. It also includes information on BSE Mid-Cap index and the broader benchmark indices.
RELIANCE NIPPON LIFE ASSET MANAGEMENT LTD share price has plunged by 5% and its current market price is Rs 162. The BSE 500 is down by 0.4%. The top gainers in the BSE 500 Index are ADANI POWER (up 6.2%) and EDELWEISS FINANCIAL (up 6.1%). The top losers are RELIANCE NIPPON LIFE ASSET MANAGEMENT LTD (down 5.3%) and PAGE INDUSTRIES (down 7.6%).
KRBL LIMITED share price has plunged by 6% and its current market price is Rs 325. The BSE 500 is down by 0.5%. The top gainers in the BSE 500 Index are ADANI POWER (up 6.6%) and EDELWEISS FINANCIAL (up 6.5%). The top losers are KRBL LIMITED (down 5.5%) and PAGE INDUSTRIES (down 7.5%).
G.E.SHIPPING share price has plunged by 5% and its current market price is Rs 272. The BSE 500 is down by 0.5%. The top gainers in the BSE 500 Index are ADANI POWER (up 6.6%) and EDELWEISS FINANCIAL (up 6.5%). The top losers are G.E.SHIPPING (down 5.3%) and PAGE INDUSTRIES (down 7.5%).
View More Indian Share Market NewsTanushree Banerjee explains everything you need to know about the Rebirth of India and Sensex 100,000.
Managements of companies can create or ruin their fortunes. Why is management quality such an important factor in valuing businesses? Read on to find out...
A roundtable on the 18th of January 2019 had investors with billions of dollars of investment kitty.
This is the trick to following super investors and not losing money.
While selecting good businesses is relatively easy task in a bearish phase, where most people fail is in having enough patience to hold the quality stocks until recovery.
More
| |
Equitymaster requests your view! Post a comment on "Indian Indices Continue Positive Trajectory, Metal Sector Spurts, and Top Stocks in Action". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!