Clear skies for airlines

Nifty50: 18,161 ▲+169 (+0.9%)
Sensex: 60,737 ▲+452 (+0.7%)

After opening on a positive note, the markets moved upwards. Of the Nifty50 pack, 34 stocks posted gains. 

Among the Nifty sectoral indices, only Realty (-0.2%) ended in the red. Auto (+3.4%) and Metal (+1.4%) were the top gainers.

For more updates on F&O, click here.

Here are the top stories of the day.

Airlines to operate at full capacity

In the wake of increasing pace of vaccination and rise in travel demand, the civil aviation ministry has allowed airlines to operate at 100% capacity from October 18, up from 85% currently. This refers to the number of flights an airline can operate out of its schedule, in percentage terms. 

The decision to eliminate curbs comes during the festive season, which has witnessed 10% increase in the number of flyers and 8% rise in the number of departures in the first seven days of the month. Experts believe that operation at full capacity will help carriers in offsetting the impact of rising oil prices, which is one of the biggest cost items. However, price caps and meal service restrictions continue to remain in place. Shares of domestic airlines SpiceJet rose by 3.8%, while IndiGo witnessed 1% drop.     

D-Mart soars on revival expectations

Shares of Avenue Supermarts soared by 18% intraday as experts believe that demand revival in the discretionary category coupled with higher commissions due to price hikes taken by FMCG companies is beneficial for the hard-discount retailer.  

Also, factors such as strong footfall recovery due to easing lockdown restrictions and pricing power during inflationary times are fuelling the rally. Paring the early gains, shares of D-Mart closed around 8% higher.

Bhansali Engineering gains after Q2 results

Shares of Mumbai-based Bhansali Engineering Polymers (BEPL) surged 8% intraday after it  reported a 248% year-on-year increase in the September quarter net profit to ₹123 crore. The rise was mainly supported by lower raw material expenses and the revenue from operations rose about 21% to ₹375 crore. 

BEPL is a manufacturer of highly engineered plastic which finds applications in home appliances, automotive, electronics and electricals. The company has planned a ₹500 crore investment to expand its ABS production capacity from about 1.3 lakh tons to 2 lakh tons. It plans to fund the expansion from its internal accruals. Meanwhile, shares of Bhansali Engineering Polymers were up by 3.3% today.    

Closing bell

Tata Group stocks were in the limelight today. The private equity investment in the Tata Motors’ EV (electric vehicle) business triggered investor interest not only in Tata Motors but in other group companies which are part of its EV ecosystem e.g. Tata Power (charging infrastructure) and Tata Chemicals (cells and batteries). Meanwhile, Nifty50 scaled newer heights supported by a broad-based rally across sectors, inflation under control and no major negative news.

Good to know

What is mark-to-market?

Mark-to-market refers to the daily settling of profit and loss on account of changes in the market value of the open derivative positions. If the value goes up on a given trading day, the trader with a long position collects money from the trader who sold it. Conversely, if the value of the security goes down on a given trading day, the trader who sold the security collects money from the trader who bought the security. This happens on a day to day basis. Click here to understand the commonly used terms, mark-to-markets, margins and settlements in the derivatives trading.    

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Investment in securities markets is subject to market risks; please read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results. Details provided in the above newsletter are for educational purposes and should not be construed as investment advice by RKSV group. Investors should consult their investment advisor before making any investment decision.