 "Nifty hovers around 6,300; Wipro up 4%")
After a lacklustre start in early trades markets firmed up in late morning trades led by IT majors on the back of better-than-expected third quarter earnings.
At 11:30AM, the 30-share Sensex was up 109 points at 21,172 and the 50-share Nifty was up 6,298 36 points after hitting an intra-day high of 6,304.95.
The rupee was trading weak amid gains in the US dollar. Currently, the rupee was trading at Rs 61.61 compared with previous close of Rs 61.54 per dollar. According to currency dealers the rupee could weaken going forward because of month end demand for dollar from importers.
The Shanghai Composite was down 0.6%. Hang Seng was down 0.7%. Japanese shares also remained weak with the benchmark Nikkei down 0.6% and Straits Times was down 0.4%.
The BSE IT index was the top gainer among the sectoral indices on the BSE up 1.5% followed by Auto, Bankex and Capital Goods among others.
IT shares have remained in demand with eight IT exporters reporting a combined 37% year-on-year growth in net profit and 27% net sales growth. Their core operating margin (excluding the impact of other income), at 28% of net sales, was at a three-year high - 60 basis points higher on sequential basis and 170 basis points more when compared with the same period last year.
Wipro was up nearly 4% after it announced strong growth in earnings for October-December 2013 (Q3), for a second quarter in a row, reaffirming belief that it was on a revival track. On a sequential basis, the net profit grew 4.3 per cent and revenue by three per cent. The sequential revenue growth in rupee terms was the highest among its peers; sector leader Tata Consultancy Services reported 1.5 per cent and HCL Technologies 2.8 per cent. Infosys reported a sequential revenue growth of only 0.5 per cent. Other gainers include, TCS up 2.6% and Infosys was up 0.3%.
ITC was up 1.5% after it posted a year-on-year rise of 16% in its net profit for the quarter ended December 2013 at Rs 2,385 crore, while net sales came in 13.1% higher on year-on-year (y-o-y) basis at Rs 8,623 crore. Nirmal Bang Securities has revised its target price on ITC upwards to Rs 394 from Rs 370 earlier based on sum-of-the-parts (FY15E), citing attractive valuations.
Other Sensex gainers include, HDFC Bank, ICICI Bank, SBI, Tata Motors and Mahindra & Mahindra among others.
Meanwhile, Reliance Industries was down 1.2% on concerns that net profit would have been lower-than-estimated without sharp growth in other income. The company’s net profit stayed flat both sequentially and annually at Rs 5,511 crore during the October-December quarter of FY14 compared with Rs 5,502 crore year ago quarter. RIL’s other income stood at Rs 6,900 crore, up 32 per cent against Rs 5,755 crore in the corresponding previous quarter.
Among other shares, Nucleus Software Exports has surged nearly 10% to Rs 148, also its 52-week high on the BSE, on reporting more than doubled consolidated net profit at Rs 23.38 crore for the quarter ended December 2013 (Q3). The small-sized IT software products maker had profit of Rs 10.94 crore in September 2013 quarter and Rs 12.32 crore in a year ago quarter.
In the broader market, the BSE Mid-cap and Small-cap indices were up 0.7% each.
Market breadth was strong with 1,227 gainers and 870 losers on the BSE.
At 11:30AM, the 30-share Sensex was up 109 points at 21,172 and the 50-share Nifty was up 6,298 36 points after hitting an intra-day high of 6,304.95.
The rupee was trading weak amid gains in the US dollar. Currently, the rupee was trading at Rs 61.61 compared with previous close of Rs 61.54 per dollar. According to currency dealers the rupee could weaken going forward because of month end demand for dollar from importers.
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Shares in China eased after fourth quarter (Oct-Dec) GDP which came in at 7.7% was tad higher than expectations of 7.6%. Meanwhile, industrial production in December which was lower-than-expected at 9.7% compared to December 2012 also weighed on market sentiment.
The Shanghai Composite was down 0.6%. Hang Seng was down 0.7%. Japanese shares also remained weak with the benchmark Nikkei down 0.6% and Straits Times was down 0.4%.
The BSE IT index was the top gainer among the sectoral indices on the BSE up 1.5% followed by Auto, Bankex and Capital Goods among others.
IT shares have remained in demand with eight IT exporters reporting a combined 37% year-on-year growth in net profit and 27% net sales growth. Their core operating margin (excluding the impact of other income), at 28% of net sales, was at a three-year high - 60 basis points higher on sequential basis and 170 basis points more when compared with the same period last year.
Wipro was up nearly 4% after it announced strong growth in earnings for October-December 2013 (Q3), for a second quarter in a row, reaffirming belief that it was on a revival track. On a sequential basis, the net profit grew 4.3 per cent and revenue by three per cent. The sequential revenue growth in rupee terms was the highest among its peers; sector leader Tata Consultancy Services reported 1.5 per cent and HCL Technologies 2.8 per cent. Infosys reported a sequential revenue growth of only 0.5 per cent. Other gainers include, TCS up 2.6% and Infosys was up 0.3%.
ITC was up 1.5% after it posted a year-on-year rise of 16% in its net profit for the quarter ended December 2013 at Rs 2,385 crore, while net sales came in 13.1% higher on year-on-year (y-o-y) basis at Rs 8,623 crore. Nirmal Bang Securities has revised its target price on ITC upwards to Rs 394 from Rs 370 earlier based on sum-of-the-parts (FY15E), citing attractive valuations.
Other Sensex gainers include, HDFC Bank, ICICI Bank, SBI, Tata Motors and Mahindra & Mahindra among others.
Meanwhile, Reliance Industries was down 1.2% on concerns that net profit would have been lower-than-estimated without sharp growth in other income. The company’s net profit stayed flat both sequentially and annually at Rs 5,511 crore during the October-December quarter of FY14 compared with Rs 5,502 crore year ago quarter. RIL’s other income stood at Rs 6,900 crore, up 32 per cent against Rs 5,755 crore in the corresponding previous quarter.
Among other shares, Nucleus Software Exports has surged nearly 10% to Rs 148, also its 52-week high on the BSE, on reporting more than doubled consolidated net profit at Rs 23.38 crore for the quarter ended December 2013 (Q3). The small-sized IT software products maker had profit of Rs 10.94 crore in September 2013 quarter and Rs 12.32 crore in a year ago quarter.
In the broader market, the BSE Mid-cap and Small-cap indices were up 0.7% each.
Market breadth was strong with 1,227 gainers and 870 losers on the BSE.