Don’t miss the latest developments in business and finance.

Market hovers near the flat line

Image
Capital Market
Last Updated : Oct 28 2016 | 1:47 PM IST

Key benchmark indices hovered near the flat line in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex was up 10.56 points or 0.04% at 27,926.46. The Nifty 50 index was currently up 16.60 points or 0.19% at 8,631.85. The market breadth indicating the overall health of the market was strong. On BSE, 1,523 shares rose and 888 shares fell. A total of 259 shares were unchanged. The BSE Mid-Cap index was currently up 0.72%. The BSE Small-Cap index was currently up 0.83%. Both these indices outperformed the Sensex.

IT stocks were mixed. Infosys (down 0.69%) and TCS (down 0.67%) edged lower. Oracle Financial Services Software (up 0.5%) and HCL Technologies (up 0.52%) edged higher.

Wipro was down 0.22%. The company announced after market hours yesterday, 27 October 2016 that it has won a five-year engagement with Speciality Restaurants for offering energy management services to the latter, which would help pare energy and operational costs.

Tech Mahindra was up 5.94%. The company's consolidated net profit declined 19.22% to Rs 643.40 crore on 3.56% growth in income from operations to Rs 7167.41 crore in Q2 September 2016 over Q1 June 2016. The result was announced after market hours yesterday, 27 October 2016.

In dollar terms, the company's consolidated net profit declined 13.4% to $96.5 million on 6.1% growth in revenue to $1.072 billion in Q2 September 2016 over Q1 June 2016. Revenue in constant currency terms rose 5% in Q2 September 2016 over Q1 June 2016.

Vineet Nayyar, Vice Chairman, Tech Mahindra said that the company's performance during the quarter indicates that its early investments in new technologies and capabilities are starting to show result.

More From This Section

C P Gurnani, Managing Director & CEO, Tech Mahindra said that overall, it was a very good quarter with the growth well-supported by its key communications and enterprises businesses. The company had some marquee wins which align very well with its strategy of catering to the connected world, he said.

Pharma stocks edged higher. Alkem Laboratories (up 2.64%), Dr Reddy's Laboratories (up 1.81%), Aurobindo Pharma (up 1.41%), Strides Shasun (up 1.22%), GlaxoSmithkline Pharmaceuticals (up 0.84%), Lupin (up 0.5%), Cadila Healthcare (up 1.29%), Wockhardt (up 0.29%), Sun Pharmaceutical Industries (up 0.2%) and Divi's Laboratories (up 0.21%) rose. Cipla (down 1.27%) and Ipca Laboratories (down 1.41%) declined.

Glenmark Pharmaceuticals rose 3.5% after net profit rose 3.46% to Rs 223.59 crore on 15.67% rise in net sales to Rs 2173.18 crore in Q2 September 2016 over Q2 September 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 11.15% to Rs Rs 448.76 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 27 October 2016.

GMR Infrastructure (GMR Infra) rose 2.42% after the company said its arm won an arbitration against Government of Maldives. The announcement was made after market hours yesterday, 27 October 2016. GMR Male International Airport (GMIAL), a subsidiary of GMR Infra, announced that it has been awarded compensation of approximately $270 million by the 3 member international arbitral tribunal. The compensation covers the debt, equity invested in the project along with a return of 17% and also termination payments and legal costs. The compensation is net of taxes that GMIAL may be required to pay in the Maldives.

GMIAL had entered into a concession agreement with Government of Maldives (GoM) and Maldives Airport Company (MACL) for modernization and operation of Ibrahim Nasir International Airport (INIA) in 2010. The Concession Agreement was wrongfully repudiated by the Government of Maldives and Maldives Airport Company Limited on 29th November 2012 alleging that the same was void abinitio. After detailed further proceedings, the tribunal has issued its final order whereby it has awarded compensation to GMIAL.

Earlier in June 2014, the arbitration tribunal had held that GoM and MACL had wrongfully repudiated the concession agreement of GMIAL and that they were jointly and severally liable in damages to GMIAL for loss caused.

In overseas stock markets, European stocks edged lower as earnings season continues amid heightened expectations that the US Federal Reserve will raise rates in the near-term. Asian stocks witnessed a mixed trend. US stocks settled with modest losses yesterday, 27 October 2016 as a selloff in government bonds hit yield-sensitive sectors such as real estate and utilities.

Powered by Capital Market - Live News

Also Read

First Published: Oct 28 2016 | 1:13 PM IST

Next Story