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After opening the day on a flat note, the Indian stock markets have continued to trade near the dotted line. Sectoral indices are trading on a positive note with stocks from the metal and consumer durables sectors leading the gains.
The BSE Sensex is trading up by 25 points (up 0.1%), while the NSE Nifty is trading up by 4 points (up 0.04%). The BSE Mid Cap index and the BSE Small Cap index are also trading marginally higher, up by 0.6% and 0.4% respectively. The rupee is trading at 67.35 to the US$.
Stocks in the aviation space are trading on a negative note with Jet Airways and Interglobe Aviation leading the losses. As per an article in the Economic Times, the Prime Minister's Office (PMO) doesn't seem convinced about Air India's revival story. While the flight carrier was able to improve its financial performance on the back of low fuel prices, the PMO has asked the airline to improve its performance on all fronts.
As reported, the PMO wants the airline's on-time performance improved to at least 85%, revenues increased by 10% and industry standard met on load or capacity utilisation. It has also asked the airline to carry out a proper survey before inducting new aircraft.
During the PMO's first official review of the airline, which was held early this month, Air India chairman Ashwani Lohani said that the airline needs more manpower and the government should allow it to hire. He also asked the retirement age at Air India to be increased to 60 from the current 58. The PMO didn't approve this but asked the aviation ministry to look into the demands.
One must note that Air India's operational parameters have fallen short of industry standards. Its on time performance was recorded as the lowest in the industry - at 74.3% - for May 2016. Its passenger load factor was 84.7% during the above month. Reportedly, the flight carrier's performance has improved for the year ending 2015-16. However, that is on the back of lower oil prices. As Vivek Kaul, editor, Vivek Kaul's Diary, states in one of his articles that as soon as fuel prices start to go up, losses at Air India will increase.
We have also written on the sorry state of affairs at Air India in one of our editions of The 5 Minute WrapUp titled Why Does the Government Keep Supporting Air India?
In another news from the automobile space, Bajaj Auto has said that it is going to ramp up production of motorcycle Bajaj V starting September. This is in order to meet the demand of the said motorcycle.
Notably, the company, which started deliveries of Bajaj V earlier in March this year, has sold 1,00,000 units of the bike in the last four months. The management said that the ramp up in production comes as they are very positive that these numbers will only continue to grow and sustain the Bajaj V as one of the bestselling premium commuter motorcycles in the country.
The motorcycle has helped Bajaj Auto to increase its overall market share in the premium commuter 125cc+ segment by 10%.
Bajaj Auto is the flagship company of the Bajaj Group. It is ranked as the world's fourth largest two- and three- wheeler manufacturer. The Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia.
Presently the stock of Bajaj Auto is trading flat on the BSE.
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