Volatility struck bourses in early trade as the key benchmark indices reversed initial gains. Infosys rose in volatile trade after the company raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014. Other IT pivotals were mixed. Private sector bank IndusInd Bank rose ahead of its Q3 December 2013 results today, 10 January 2014. The barometer index, the S&P BSE Sensex was down 30.24 points or 0.15%, off 97.92 points from the day's high and up 36.16 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Asian markets were trading mostly higher ahead of US jobs data due later in the global day.
Foreign institutional investors (FIIs) sold shares worth a net Rs 3.74 crore on Thursday, 9 January 2014, as per provisional data from the stock exchanges.
At 9:25 IST, the S&P BSE Sensex was down 30.24 points or 0.15% to 20,683.13. The index gained 67.68 points at the day's high of 20,781.05 in early trade. The index fell 66.40 points at the day's low of 20,646.97 in early trade.
The CNX Nifty was down 14.20 points or 0.23% to 6,154.15. The index hit a high of 6,185.90 in intraday trade. The index hit a low of 6,145.95 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 488 shares declined and 396 shares gained. A total of 33 shares were unchanged.
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The total turnover on BSE amounted to Rs 147 crore by 09:25 IST.
Among the 30-share Sensex pack, 23 stocks declined and rest of them gained.
Sesa Sterlite (down 1.82%), Coal India (down 1.49%) and Mahindra & Mahindra (down 1.19%) edged lower from the Sensex pack.
Infosys rose 1.16% to Rs 3,491. The stock hit a high of Rs 3,529.90 and low of Rs 3,449 so far during the day. The stock saw early volatility in reaction to its Q3 results which was announced before market hours today, 10 January 2014. On a consolidated basis, Infosys' net profit grew 19.4% to Rs 2875 crore on 0.5% rise in revenues to Rs 13026 crore in Q3 December 2013 over Q2 September 2013. Infosys has made a provision of Rs 219 crore towards visa related expenses in Q2 September 2013. The results are as per International Financial Reporting Standards (IFRS). Infosys made a provision of Rs 219 crore towards visa related matters as administrative expenses in Q3 December 2013.
Infosys raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014. The company expects consolidated revenues in rupee terms to grow 24.4% to 24.9% for the fiscal year ending 31 March 2014, under IFRS (based on a conversion rate of $1 = Rs 61.81 for the rest of the fiscal year). The company expects consolidated revenues in dollar terms to grow 11.5% to 12% for the fiscal year ending 31 March 2014, under IFRS.
Infosys and its subsidiaries added 54 clients during Q3 December 2013. The company and its subsidiaries reported a gross addition of 6,682 employees for the quarter. Infosys and its subsidiaries had 158,404 employees as on 31 December 2013.
Infosys said its board at its meeting held on 10 January 2014, appointed Mr. U. B. Pravin Rao as an Additional Director and Whole-time Director of the company with immediate effect.
The board also appointed Ms. Kiran Mazumdar-Shaw as an Additional (Independent) Director of the Company with immediate effect.
At the time of announcement of Q2 September 2013 results in October 2013, Infosys had raised its revenue guidance in both dollar and rupee terms. The increase in revenue growth guidance in rupee terms was driven by weakness in rupee against the dollar. The company had at that time forecast 9% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014). At that time, the company had issued a forecast of 21% to 22% growth in revenue in rupee terms based on the assumption of rupee dollar conversion rate of 62.61 for the rest of the fiscal year.
"The year ahead looks exciting for the IT services industry. We believe the global economic environment has improved and our clients are gaining confidence to invest in their strategic initiatives. said S. D. Shibulal, CEO and Managing Director. We continue to differentiate ourselves to seize growth opportunities. The recent changes in organizational structure will enable us to strengthen client relationships and increase market share."
'During the quarter, we saw early but promising results of our initiatives to increase efficiency in our operations," said Rajiv Bansal, Chief Financial Officer. "We continue to remain focused on making investments necessary to secure and grow our future."
Liquid assets including cash and cash equivalents, available-for-sale financial assets, certificates of deposits and government bonds were Rs 27,440 crore as on 31 December 2013 versus Rs 26907 crore as on 30 September 2013.
Other IT pivotals were mixed. Wipro fell 0.78%. TCS rose 0.13%.
IndusInd Bank rose 0.8%. The private sector bank unveils its Q3 December 2013 results today, 10 January 2014.
Industrial production is seen registering a muted growth of 0.9% in November 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had declined 1.8% in October 2013, against 2% growth in September 2013. The decline in the output of manufacturing sector at 2% and mining sector at 3.5% mainly led to decline in industrial production in October 2013. The government will unveil industrial production data for November 2013 after trading hours today, 10 January 2014.
The next major trigger for the stock market is Q3 December 2013 corporate earnings. Investors and analysts will closely watch the management commentary that would accompany the result to see if there is any revision in their future earnings forecast of the company for the current year and/or the next year.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian markets were trading mostly higher ahead of US jobs data due later in the global day. Key benchmark indices in Indonesia, Hong Kong, Singapore and Taiwan rose by 0.13% to 0.35%. Key benchmark indices in China, Japan and South Korea fell by 0.18% to 0.6%.
China's exports rose 4.3% in December from a year earlier, according to reported data, after surging 12.7% in November. Imports were 8.3% higher than the year-ago month, accelerating from 5.3% growth in November. The resulting trade surplus was $25.6 billion, narrowing from the previous month's $33.8 billion.
The S&P 500 index eked out a marginal gain on Thursday, 9 January 2014 while the Dow Jones Industrial Average and the Nasdaq Composite index dropped, weighed down by losses for Verizon Communications Inc. and AT&T Inc.
The number of Americans who applied to receive unemployment benefits in the first week of the new year fell to the lowest level since the end of November. In the week ended Jan. 4, initial jobless claims fell by 15,000 to a seasonally adjusted 330,000, the U.S. Department of Labor said Thursday.
The US government will unveil the influential non-farm payroll report for December 2013 today, 10 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. The US central bank is poised to continue winding down its stimulus measures gradually this year.
The Bank of England on Thursday, 9 January 2014, left the size of its bond-buying program unchanged and held its key lending rate at a record low of 0.5%, where it has stood since March 2009. The central bank's Monetary Policy Committee left its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($617 billion). The minutes from the January meeting will be published on 22 January 2014.
The European Central Bank also left policy unchanged at 0.25% on Thursday, 9 January 2014, with its president Mario Draghi detailing the bank's commitment to its low-rate policies. Mario Draghi said at a press conference that the central bank will be ready to act when it believes the inflation outlook is changing for the worse.
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