After a range bound movement in morning trade, key benchmark indices extended gains. At 10:15 IST, the barometer index, the S&P BSE Sensex was up 88.76 points or 0.33% at 27,168.27. The 50-unit CNX Nifty was up 25.65 points or 0.31% at 8,215.35. Shares of IT major Infosys edged lower in choppy trade after the company lowered its full year revenue growth guidance in dollar terms for the year ending 31 March 2016 (FY 2016) at the time of announcement of Q2 September 2015 results.
The market breadth indicating the overall health of the market was strong. On BSE, 1,137 shares gained and 723 shares fell. A total of 66 shares were unchanged. The BSE Mid-Cap index was up 0.54%. The BSE Small-Cap index was up 0.48%. Both these indices outperformed the Sensex.
In overseas stock markets, Chinese stocks led gains for Asian markets. In mainland China, the Shanghai Composite was currently up 3.9%. US stocks edged higher during the previous trading session on Friday, 9 October 2015, helped by gains in shares of airlines and industrial companies.
Shares of IT major Infosys edged lower in choppy trade after the company lowered its full year revenue growth guidance in dollar terms for the year ending 31 March 2016 (FY 2016) at the time of announcement of Q2 September 2015 results. The stock was off 1.9% at Rs 1,145.65. The stock hit a high of Rs 1,219 so far during the day, which is a record high for the counter. The stock hit a low of Rs 1,108.90 so far during the day. Infosys now expects its revenue to grow 6.4%-8.4% in dollar terms for FY 2016. At the time of announcing Q1 June 2015 results, Infosys had forecast revenue growth of 7.2%-9.2% in dollar terms for FY 2016.
The revenue growth guidance for FY 2016 has been kept unchanged at 10%-12% in constant currency terms.
Thanks to weakness of the rupee against the dollar, Infosys has raised full year revenue growth guidance in rupee terms. Infosys now expects its revenue to grow 13.1%-15.1% in rupee terms in FY 2016. At the time of announcing Q1 June 2015 results, Infosys had forecast 11.5%-13.5% growth in the company's revenue in rupee terms for FY 2016. The revised guidance is based on rupee dollar exchange rate of 65.59.
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Infosys' consolidated net profit rose 12.1% to Rs 3398 crore on 8.9% growth in revenue to Rs 15635 crore in Q2 September 2015 over Q1 June 2015. The results are as per International Financial Reporting Standards (IFRS). The result was announced during market hours today, 12 October 2015.
Meanwhile, Rajiv Bansal has stepped down as Chief Financial Officer (CFO) of Infosys effective 12 October 2015. Ranganath M. D. has been appointed as the new CFO.
IT stocks were mostly higher. Tech Mahindra (up 0.29%), MindTree (up 0.25%) and Wipro (up 0.01%) edged higher. Oracle Financial Services Software (down 0.94%) and HCL Technologies (down 0.8%) edged lower.
TCS rose 0.6% at Rs 2,645.60. The company is set to announce its Q2 September 2015 results tomorrow, 13 October 2015.
Metal and mining stocks gained. NMDC (up 2.7%), Jindal Steel & Power (up 2.74%), Hindalco Industries (up 2.69%), Hindustan Zinc (up 1.43%), Steel Authority of India (up 0.98%) and JSW Steel (up 0.52%) edged higher. National Aluminium Company (down 0.77%) edged lower.
Vedanta rose 6.56% at Rs 110.40. With reference to media reports titled Vedanta eyes Solar Energy Biz, plans to create 500 MW capacity, Vedanta after market hours on Friday, 9 October 2015, clarified that the company has no firm plans to enter the solar generation industry and termed the media reports as speculation.
Tata Steel rose 2.37% at Rs 256.70. The company announced after market hours on Friday, 9 October 2015, that its hot metal production rose 3% to 2.66 million tonnes in Q2 September 2015 over Q2 September 2014. Crude steel production rose 11% to 2.51 million tonnes in Q2 September 2015 over Q2 September 2014. Saleable steel production rose 9% to 2.41 million tonnes in Q2 September 2015 over Q2 September 2014. Deliveries rose 11% to 2.33 million tonnes in Q2 September 2015 over Q2 September 2014.
Yes Bank edged higher after the bank announced during market hours today, 12 October 2015, it has received an approval from the Reserve Bank of India (RBI) to sponsor a mutual fund and to set up an asset management company (AMC), and a Trustee Company. The stock rose 1.42% at Rs 735.50. The AMC and the Trust Companies shall be set up as wholly owned subsidiaries of Yes Bank, the bank said in a statement. Yes Bank will now apply to the Securities and Exchange Board of India (Sebi) to seek necessary approvals.
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