Shares of SpiceJet jumped 10 percent as investors queued up for buying shares of the low-cost carrier after Ajay Singh decided to take complete control of the company which has been struggling with financial problems. Sun TV Network gained 9 percent as brokerages believe the SpiceJet deal removed a major overhang on the stock.

Piramal Enterprises (PEL) gained 2 percent today as the Piramal Group company has been considering the acquisition of UK-based company. “Piramal Enterprises is in final stages of discussion with the University of Kentucky for the potential acquisition of Coldstream Laboratories for a total consideration of USD 30.65 million,” said the company in its filing to the exchange. Of the total amount, USD 5.65 million would be towards the Coldstream facility on the Research Park Campus of the University, while the rest would be towards purchase of the company’s shares, it added.

This potential transaction is subject to corporate approvals and is expected to be completed by the end of this week. However, the transaction is not subject to any regulatory approvals. No related party of PEL has any interest in Coldstream, said the Piramal Group company.

Equity benchmarks entered into consolidation mode after the yesterday’s rally priced in all events like surprise rate cut by RBI, fall in trade deficit etc. The frontline indices were marginally in red on profit booking. The Sensex fell 42.23 points to 28033.32 and the Nifty declined 12.15 points to 8482. However, the broader markets outperformed benchmarks marginally with the BSE Midcap and Smallcap indices rising 0.2-0.5 percent. About 1073 shares have advanced, 786 shares declined, and 276 shares are unchanged on the Bombay Stock Exchange.

“With sharply lower commodity prices, favourable macro indicators like inflation, CAD & fiscal deficit and now rate cuts, we believe conditions are ripe for economic recovery to take shape,??? says Rakesh Arora, Macquarie. According to him, the government sustaining its policy momentum and delivering on reforms would be key. “Markets will closely watch the upcoming Budget session in late February. In our view, any market weakness should be seen as an opportunity to buy,??? says Arora.

Coustery : http://www.moneycontrol.com/news/local-markets/sensex-holds-28000-amid-pressure-sun-tv-spicejetfocus_1275975.html

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