The key indices extended gains and hit fresh intraday high in mid-morning trade. Aviation stocks advanced after the government allowed to raising the upper and the lower caps on airline fares. At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 183.04 points or 0.36% to 51,714.56. The Nifty 50 index added 53.75 points or 0.35% to 15,227.05.
The domestic equity barometers have climbed nearly 25% since January 2021 following a range of positive developments, including a high-spending union budget, strong corporate earnings, robust foreign fund flows and progress on COVID-19 vaccinations.
In the broader market, the S&P BSE Mid-Cap index rose 0.29% and the S&P BSE Small-Cap index gained 0.59%.
The market breadth was positive. On the BSE, 1562 shares rose and 1091 shares fell. A total of 155 shares were unchanged.
COVID-19 Update:
Total COVID-19 confirmed cases worldwide stood at 107,767,935 with 2,367,856 deaths. India reported 135,926 active cases of COVID-19 infection and 155,447 deaths while 104,96,308 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
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Buzzing Segment:
Shares of two airline companies were in demand as the ministry of civil aviation on Thursday extended the cap on domestic flights' price bands till March 21 but it allowed the airlines to increase the upper and lower cap on the fares by up to 30%.
SpiceJet rose 3.76% to Rs 91 while shares of Interglobe Aviation (IndiGo) rose 1.91% to Rs 1658.15 on the BSE.
The centre had imposed a cap on domestic airfare after resumption of flights on 25 May last year, following a two-month suspension of services imposed due to the lockdown, to curb the spread of COVID-19.
Airlines will be allowed to charge more from passengers as the government has allowed a substantial increase on the upper and lower limits of the price bands. For flights with duration between 90 to 120 minutes, the lower fare cap has been increased to Rs 3,900 from Rs 3,500. The cap on maximum chargeable fare has been increased to Rs 13,000 from Rs 10,000.
Earnings Impact:
Oil India fell 2.83% to Rs 116.60. On a consolidated basis, the company's net profit jumped 25.4% to Rs 889.69 crore on 27.7% decline in net sales to Rs 2,137.34 crore in Q3 December 2020 over Q3 December 2019. The profit was boosted by the company receiving direct tax reversal of Rs 1,158.54 crore during the quarter.
Crude oil production rose marginally by 0.13% to 0.748 million metric tonnes (MMT) in Q3 FY21 as against 0.747 MMT in Q3 FY20. Crude oil sales slipped 0.41% to 0.723 MMT in Q3 FY21 compared with 0.726 MMT in Q3 FY20. Crude oil price realization dropped 30.31% to $44.09 a barrel in Q3 FY21 from $63.27 a barrel in Q3 FY20.
Petronet LNG shed 0.43% to Rs 241.80. The company reported a 30% rise in consolidated net profit to Rs 882.05 crore on a 17.8% fall in net sales to Rs 7,328.23 crore in Q3 FY21 over Q3 FY20.
Global Markets:
Asian stocks were mixed note on Thursday as multiple major markets in the region were closed for holidays. Markets in China, Japan, South Korea and Taiwan were closed for holidays.
In US, the Nasdaq and S&P 500 eked out modest gains on Thursday with investors betting on more fiscal stimulus, but U.S. President Joe Biden said China was poised to eat our lunch, a warning that tempered enthusiasm for a market near record highs. The Dow Jones Industrial Average ended near the flatline.
Federal Reserve Chairman Jerome Powell said Wednesday that the economy faces challenges in the labor market, and so monetary policy needs to stay 'patiently accommodative.' In remarks at the Economic Club of New York, Powell said the employment picture is a 'long way' from where it needs to be.
The number of Americans filing new applications for unemployment benefits inched down last week. Initial claims for state unemployment benefits totaled a seasonally adjusted 793,000 for the week ended February 6, compared to 812,000 in the prior week, the Labor Department said on Thursday.
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