Market movers: What boosted Burger King stock by 6%

As smart money moved in Burger King during its qualified investment placement, investors on Dalal Street also lapped up its shares on Wednesday sending prices up 6 per cent.

The company said among the investors that were allotted shares were BNP Paribas, Fidelity Investment, Aditya Birla Sun Life Trustee, Newport Asia, Bofa Securities and Bajaj Allianz Life Insurance. The company allotted shares at Rs 129.25, which was at 5 per cent discount to the floor price of the share sale.

Burger King is also a beneficiary of the reopening theme. Its business is likely to see traction going ahead as vaccinations rates have surged and pandemic is making way for normalcy.


Sky high prices
Shares of airline companies ended the day in red as jet fuel prices soared to record high levels across the country after rates were increased by 5.2 per cent in line with a rise in international oil prices.

ATF price was hiked by Rs 4,481.63 per kilolitre or 5.2 per cent to Rs 90,519.79 per kilolitre in the national capital, according to a price notification of state-owned fuel retailers.

The sharp rise in prices will hit the already miniscule margins of airline companies, unless they seek a far hike, which seems difficult in the cut-throat industry. IndiGo and SpiceJet both ended down 1.17 per cent on NSE.

No crude shock here
Unlike airline companies, rising crude oil prices lifted shares of Oil & Natural Gas Corporation (ONGC). The stock ended the day up 2.65 per cent.

The company’s revenue has already benefited from high crude oil prices. Now, analysts are expecting prices to jump higher, which will further lift its earnings outlook in the ongoing quarter.

“If we do not have a deal with Iran in the next three weeks, the prices will be well ahead of $100 a barrel because the OPEC capacity is not there,” Fereidun Fesharaki, Founder & Chairman, FGE.