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Shares of Multi Commodity Exchange of India soared over 12 per cent to hit its one-year high level after SEBI allowed options trading on the exchanges.
The stock surged 12.3 per cent to touch its one-year high of Rs 1,400 on the BSE.
On the NSE, it jumped 11.87 per cent to Rs 1,399 —— its 52-week high.
In a major push to deepen the commodity derivatives market, SEBI had yesterday allowed options trading on exchanges while six new products, including diamond, have been added to the list of commodities on which derivative contracts can be launched and traded.
The new items —— diamond, tea, eggs, cocoa, pig iron and brass —— have taken the total number of permitted commodities on the notified list to 91.
Exchanges, investors and other market participants have been demanding options trading as also new products for a long time. They have welcomed the move taken by the government and SEBI, which now regulates the commodities market as well.
So far, only futures contracts are permitted in the commodity derivatives trading space.
“Introduction of options would deepen and transform the Indian commodity derivatives markets both in terms of products and participants. It will also complement the existing futures contracts and make Indian commodity derivatives more vibrant and efficient,” MCX MD and CEO Mrugank Paranjape said.
Energy stocks
Energy stocks gained as oil prices rally after OPEC deal.
The S&P BSE Oil & Gas Index gained as much as 1.36 per cent, while the Nifty energy index rose 1.17 per cent.
OPEC had agreed on Wednesday to curb output in first such deal since 2008, sending global oil prices into a rally.
OPEC members have agreed to limit production to 32.5-33.0 mln barrels per day at talks held on the sidelines of an energy conference in Algeria.
Oil and Natural Gas Corp rose as much as 2.52 per cent. The stock was the top gainer on the Nifty index.
Reliance Industries Ltd rose 1.59 per cent and Cairn India Ltd gained 1.91 per cent.
United Breweries (Holdings)
Shares of United Breweries (Holdings) surged 10 per cent today after its net profit rose over 13-fold for the first quarter ended June 30, 2016.
The stock zoomed 9.98 per cent to Rs 46.80 on the BSE.
On the NSE, shares of the company jumped 9.9 per cent to Rs 46.60.
Net profit of United Breweries (Holdings) Ltd (UBHL) rose over 13-fold to Rs 29.47 crore for the first quarter ended June 30, 2016.
The company had posted a net profit of Rs 2.15 crore during the same period of the previous fiscal.
Total income from operations rose 34.13 per cent to Rs 96.23 crore during the June quarter as against Rs 71.74 crore in the same period a year ago, UBHL said in a BSE filing today.
On May 24 this year, UBHL had sought time till July to file results for the last fiscal due to “uncertainties” resulting from ongoing cases against its Chairman Vijay Mallya.
Hindustan Copper
Shares of state-run miner Hindustan Copper Ltd fell as much as 5.26 per cent to their lowest since September 16 on disinvestment.
The government will sell 7 per cent stake in Hindustan Copper, potentially raising Rs 402 crore ($60.50 million).
The government is selling 64.7 million shares, and has set a floor price of Rs 62 per share, accordingly to a regulatory filing on Wednesday.
The government owns almost 90 per cent stake in Hindustan Copper, according to Thomson Reuters Eikon data.
The stock had risen 11.57 per cent this year as of Wednesday’s close.
Ceat
Shares of Ceat today rose over 4 per cent after Singapore-based fund management company Amansa Holding Pte increased its stake in the tyre major.
The stock gained 4.39 per cent to Rs 1,310 on the BSE. On the NSE, shares of the company went up 4.29 per cent to Rs 1,309.70.
Amansa has increased its stake in Ceat to over 5 per cent by acquiring 1.17 per cent stake through secondary market purchase.
It has acquired 4,75,000 shares of the tyre maker constituting 1.17 per cent stake, thereby taking its overall stake in the firm to 5.19 per cent, Ceat had said in a BSE filing yesterday.
Before acquiring the 1.17 per cent stake on September 23, the fund management firm had 16,24,884 shares in Ceat, constituting a stake of 4.02 per cent.
Ceat manufactures radial tyres for a range of vehicles including buses, trucks, cars, bikes and scooters among others.
Eros International Media
Shares of Eros International Media rose nearly 5 per cent today after the entertainment firm said it has tied up with UAE’s largest film distribution and exhibition network, Phars Film.
Opening on a strong note, the stock gained 5.15 per cent to Rs 220.50 on the BSE. On the NSE, it jumped 4.38 per cent to Rs 219.
Eros International Media had yesterday announced its association with Phars Film.
The partnership allows the two companies to jointly co-produce Malayalam films and explore theatrical rights between themselves, the company said in a BSE filing.
The deal will allow Eros to tap the distribution of all Malayalam movies produced jointly in India, while Phars Film will present the same overseas where it enjoys a dominant market share, it added.
Jaiprakash Associates
Shares of Jaiprakash Associates rose over 5 per cent today after the debt-laden JP Group said its shareholders have approved the company’s proposal to convert its debt into equity.
The stock surged 5.11 per cent to Rs 11.71 on the BSE.
On the NSE, shares of the company gained 5.38 per cent to Rs 11.75.
Shareholders of Jaiprakash Associates had yesterday approved the “option to convert loans, debentures or other borrowings/debt of the company into equity shares/securities of the company,” it said in a regulatory filing.
Explaining the rationale behind the move, JAL in a filing had earlier said that recessionary trend in construction/ infrastructure sectors during last few years coupled with setbacks in timely monetisation of some of the assets of the company resulted in cash flow mismatch leading to some delays in honouring debt obligations.
“The lenders may consider an option to convert their loan/credit facilities (including unpaid interest) in full or part thereof, into equity shares/securities of the company...,” it had said.
In last few months, JAL has informed exchanges that it has failed to meet its debt and interest payment commitments.
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