Indian Indices End On A Strong Note; Sensex Ends 489 Points Higher

After opening the day marginally lower, Indian share markets witnessed most of the buying interest during closing hours and ended their trading session on a strong note. Gains were largely seen in the automobile sectorcapital goods sector and healthcare sector.

At the closing bell, the BSE Sensex stood higher by 489 points (up 1.3%) and the NSE Nifty closed higher by 140 points (up 1.2%). The BSE Mid Cap index ended the day up 1.6%, while the BSE Small Cap index ended the day up by 1.1%.

The rupee was trading at 69.57 against the US$.

In the news from the aviation sector, falling for 13 sessions in a row, Jet Airways share price plunged around 18% in early trade today to hit its fresh all-time low of Rs 27.

The selling pressure came as Indian lenders' efforts to initiate insolvency proceedings against Jet Airways are facing a fresh challenge. As per the news, the trustee appointed by a Netherlands court, which had last month declared the grounded airline bankrupt, is seeking to intervene.

Later during closing hours, shares of Jet Airways zoomed around 125% as reports stated that the tribunal will pass order on company's insolvency case at 5 pm today.

Earlier this week, State Bank of India filed an insolvency petition against the company to recover dues.

Insolvency proceedings against Jet Airways has started as a consortium of lenders led by the State Bank of India (SBI) failed to find a buyer for the beleaguered airline.

Note that Jet Airways has a debt of nearly Rs 85 billion on its books with total liabilities of around Rs 250 billion.

Several people from the top management have left the airline company in the past few months. Lenders to the cash-strapped airline, led by the SBI are seeking investors to recover their dues.

How this pans out remains to be seen. Meanwhile, we will keep you updated on all the developments form this space.

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