IDBI Bank, IndiGo, Persistent Systems hit 52-week highs

Avenue Supermarts, Britannia Industries, Hindustan Zinc, Mindtree, Venky's India and Sunflag Iron & Steel Company were hit their respective record highs.

IDBI Bank, InterGlobe Aviation (IndiGo), Persistent Systems, Firstsource Solutions and Seamec were among 12 stocks from the S&P BSE 500 and S&P BSE Smallcap index hitting their respective 52-week highs on the BSE in intra-day trade on Monday.

Of these 12 stocks, the market price of Avenue Supermarts, which runs the D-Mart supermarkets chain, Britannia Industries, Hindustan Zinc, Mindtree, Venky’s India and Sunflag Iron & Steel Company were trading at their respective record highs on the BSE.

IDBI Bank was quoting higher for the sixth straight trading sessions, up 8.5% to Rs 83.65 on back of heavy volumes. The trading volumes on the counter nearly doubled with a combined 30.76 million shares changed hands on the BSE and NSE till 11:12 am.

The stock of public sector lender 35% in past six trading days as the media report suggested that the government is in early stages of negotiation with a Singapore-based private equity player to sell 10% stake in the IDBI Bank.

Seamac is locked in upper circuit of 5% at Rs 204, extending its Fridays 4% gain, after the company said it has entered into a contract for the charter hire of vessel "REVELATION" with Kreuz Subsea Pte Ltd, for undertaking a job in offshore west coast of India.

The tenure of the contract is for a firm period of 50 days' subject to extension thereafter with mutual consent. The contract will commence around the first week of March, 2018.  The value of charter during firm period is USD 300,000, Seamac said in a regulatory filing.

IndiGo was up 4% to Rs 1,350 on the BSE in intra-day trade, extending its previous days 1.5% gain. Since January 23, post December quarter results, the stock has outperformed the market by surging 13% against 4.8% decline in the S&P BSE Sensex. The stock hit a record high of Rs 1,396 on January 1, 2016 on the BSE in intra-day trade.

On February 11, 2018, IndiGo informed the stock exchanges that Airbus has informed the company about an issue on some of the engines powering its A320neo aircraft.

Product Safety Boards of Pratt & Whitney (P&W) and Airbus, post evaluating the PW1100G-JM engine issue, have decided that all neo deliveries are on hold till further notice. The issue impacts a limited sub population of engines and IndiGo had to ground 3 of its aircraft in the interim, the company said.

Analysts at JP Morgan ‘overweight’ on the stock with price target of Rs 1,500.

“We like Indigo's high market share, high Return on Equity or RoE, efficient operations, and low leverage. The cost curve for Indigo remains well under control, in our view, and the company has an opportunity to improve the gap vs. peers by buying planes,” the brokerage firm said in a report.

Overall near term we believe financial impact to Indigo may be limited as it receives compensation from P&W for grounded engines. However it does hit operations by reducing flexibility and increasing reliance on short term leases. We will await clarification from management on how this issue will impact their capacity growth targets and financials, added report.

COMPANY	LATEST	52 WK HIGH	PREV HIGH	PREV DATE
AVENUE SUPER.	1316.30	1326.75	1306.00	23-Feb-18
BRITANNIA INDS.	4989.95	4997.40	4981.80	23-Feb-18
CHOLAMAN.INV.&FN	1426.00	1437.00	1426.35	23-Feb-18
FIRSTSOUR.SOLU.	52.25	52.85	52.45	23-Feb-18
HIND.ZINC	334.20	339.55	330.60	23-Oct-17
IDBI BANK	83.15	83.65	83.55	21-Feb-17
INTERGLOBE AVIAT	1343.50	1350.00	1346.35	17-Aug-17
MINDTREE	823.20	826.50	819.80	23-Feb-18
PERSISTENT SYS	835.75	848.65	827.00	23-Feb-18
SEAMEC LTD	204.10	204.10	196.85	23-Feb-18
SUNFLAG IRON	96.70	98.00	94.90	23-Feb-18
VENKY'S (INDIA)	3314.00	3385.00	3268.00	23-Feb-18