A bout of volatility was seen as the key indices extended gains in morning trade. At 10:22 IST, the barometer index, the S&P BSE Sensex, was up 117.87 points or 0.31% at 37,926.78. The Nifty 50 index was up 38.25 points or 0.34% at 11,392.50.
Local stocks were trading with small gains in early trade.
The S&P BSE Mid-Cap index was up 0.61%. The S&P BSE Small-Cap index was up 0.59%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1232 shares rose and 709 shares fell. A total of 102 shares were unchanged.
Back home, ICICI Bank (up 1.83%), Vedanta (up 1.81%), Reliance Industries (up 1.53%), State Bank of India (up 1.41%) and Bajaj Finance (up 1.21%) edged higher from the Sensex pack.
Infosys (down 1.73%), TCS (down 1.1%), ITC (down 0.63%), Power Grid Corporation of India (down 0.62%) and Bajaj Auto (down 0.43%) edged lower from the Sensex pack.
Jet Airways (India) rose 6.72% after the company said Naresh Goyal stepped down as chairman. As part of the proposed solution, the company's board approved the conversion of Re 1 of lenders' debt into equity by the issuance of 11.40 crore equity shares, in accordance with the RBI Circular of 12 February 2018. With this, the consortium of Indian lenders, led by State Bank of India (SBI), will become the majority shareholders of Jet Airways. As part of the resolution plan, the lenders will also begin the process of sale/ issue of shares to new investors which is expected to be completed in the June quarter. The announcement was made after market hours yesterday, 25 March 2019.
The board also approved its reconstitution by resignation of promoter, Mr Naresh Goyal, Mrs. Anita Goyal, and Mr. Kevin Knight, nominee director of Etihad Airways from their positions on the company's board. The two nominees of the promoter and one nominee of Etihad Airways will continue on the board. Two lender nominees will be inducted to its board, subject to the receipt of requisite approvals.
As part of the resolution plan, the lenders will provide an immediate interim funding support of Rs 1500 crore to Jet Airways. The company will also engage with payment intermediaries for release of trapped cash. The airline will leverage the funding to partly clear pending dues towards lessors, vendors, creditors and employees in a phased manner. The move will see Jet Airways re-deploy several of its grounded aircraft back into its network, helping renew many of the routes it had temporarily suspended, which will help restore normalcy of operations, aiding the airline's long term transformation to continue expansion and to regain its position as a global player.
Overseas, most Asian stocks were trading higher. U.S. stocks closed mostly lower Monday after data showing weakness on the global economic front triggered heavy losses at the end of last week while investors continued to fret over the inversion of the yield curve. However, the Dow bucked the trend to rise as shares of Boeing Co. rallied after recent losses.
Meanwhile, the markets showed little reaction to the end of Special Counsel Robert Mueller's probe into Russian meddling in the 2016 presidential election.
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