Sensex Trades 350 Points Higher; Yes Bank & Infosys Top Gainers

Share markets in India are presently trading on a positive note. Barring telecom sector, all sectoral indices are trading in green with stocks in the IT sector, realty sector and power sector witnessing maximum buying interest.

The BSE Sensex is trading up by 350 points (up 1%), while the NSE Nifty is trading up by 109 points (up 1.1%). The BSE Mid Cap index and the BSE Small Cap index are trading up by 0.6%.

The rupee is trading at 71.03 against the US$.

In the news from the airline's space, Jet Airways share price is witnessing buying interest today on reports that lenders are preparing to buy a substantial stake and restructure the debt of the cash-strapped airline as a forensic audit has not shown any adverse findings.

Last month, State Bank of India (SBI), which leads the consortium of lenders, had appointed a consulting firm to carry out a forensic audit of the airline's accounts following complaints of fund diversion.

According to reports, banks have now initiated steps for a resolution of the stressed asset in accordance with the Reserve Bank of India (RBI) norms.

Shares of the company rallied around 18% in yesterday's trade on reports that the company is close to finalizing a resolution plan.

Reportedly, promoter Naresh Goyal is likely to step down from the board giving up majority control and his stake in the airline may be down to 20-25% with voting rights capped at 10% after the restructuring.

Naresh Goyal's son Nivaan is likely to have a board role, and a meet is scheduled on January 16 to finalize the deal.

As per an article in a leading financial daily, after the implementation of the resolution plan, banks may increase equity as a part of the restructuring plan. Etihad may infuse capital that could trigger an open offer.

Last Friday, reports stated that the Tata-Jet Airways deal is back on the table.

1 2
View single page >> |

Disclosure: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.