MUMBAI: While most investors were sulking today, those of
were overjoyed. The stock withstood the selling storm in the market with aplomb as it closed 1.2 per cent higher on a day when the benchmark indices slumped nearly 2 per cent.
The reason behind the stellar show by United Spirits was the management’s commentary. United Spirits management indicated that demand scenario was improving rapidly.
The management also highlighted how the premium whiskey segment is benefitting from the enhanced spending ability of high net worth and ultra-high net worth individuals in the country. Even as the market’s spirits are down, USL’s spirits have just started to soar.
IRCTC’s last hurray
soared nearly 12 per cent today as retail investors thought that the stock split that took place today made the scrip somehow less costly to purchase, and rushed in. The five-for-one stock split reduced the stock’s price artificially without changing the valuation of the company.
However, little did investors know that today’s green on IRCTC would be the last they may see for some time to come given the post-market announcement made by the company.
IRCTC said in an exchange filing that the government has asked the company to share 50 per cent of revenue from convenience fee charged on Internet ticketing with itself. Given that a large part of the company’s sales come from Internet ticketing and half of that will now go out of the company, the stock is primed for a deep correction on Friday and the days to come.
IndusInd Bank shines
A strong September quarter earnings performance by the bank was duly rewarded by the market, as shares of the lender closed 2.6 per cent higher on a day when Nifty Bank index collapsed more than 1,300 points.
Impressively, IndusInd Bank’s earnings showed signs that corporate loan demand may be recovering as the corporate loan book of the lender grew 16 per cent on-year. Investors will hope that the performance of the lender in Q2 is the first of many strong quarterly results.Internet Explorer Channel Network