 "Markets open firm post Infosys Q2 nos; Infosys up 3%")
Benchmark indices continue to trade in a narrow range post the announcement of Infosys second quarter earnings. Shares of Infosys have dipped 5% to Rs 1,109, declining 9% from intra-day high on the NSE after it announced the downward revision of its full-year revenue.
By 10:15 am, the Sensex was higher by 68 points at 27,147 and the Nifty gained by 16 points at 8,205.
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.5%. Markets breadth is positive on the BSE with 866 advances and 704 declines.
The top gainers from the Sensex pack are Vedanta, Hindalco, Tata Steel, Tata Motors and ONGC. On the losing side, Infosys, Lupin, Cipla, HDFC and HUL are down 1-2%.
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Updated at 9:35
Markets have turned weak after making a higher opening post the announcement of Infosys’s second quarter numbers. The standalone net profit of the company stands at Rs 6,306 cr.
By 9:35, the Sensex was lower by 20 points at 27,059 and the Nifty dipped by 7 points at 8,178.
Shares of IT giant Infosys are off day's high and are trading lower by 3% after the company posted its Q2 results with the company quoting a standalone net profit of Rs 6,306 crore.
Among corporate earnings, TCS will announce the Q2 numbers on Tuesday with Hindustan Unilever and Zee Entertainment Enterprises set to declare their results on Wednesday. RIL will announce its result on Friday.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 483.86 crore on Friday, as per provisional data released by the stock exchanges.
Markets participant will keep a close eye on first of five voting phases in the high-stakes Bihar Assembly election began today.
INFOSYS Q2 EARNINGS
Infosys, India’s second largest information technology (IT) services company, today reported Q2 net profit of Rs 3,398 crore.
The company also announed that CFO Rajiv Bansal will step down. Infosys announced a dividend of Rs 10/share. Shares of IT giant Infosys are off day's high and are trading lower by 3%.
MARKET VIEW
According to Anand Rathi’s report, “Nifty has to hold above its 8,150 levels to continue the positive momentum towards 8,250-8,280 zones. If index fails to hold 8,120 zones then momentum may fizzle out and market may tumble down towards next support of 8050 zones. If Sensex manages to sustain 26,900 levels then buying interest may sustain and continue the positive move towards 27,250 and 27,500 levels, while if it fails to hold 26,750 levels then profit booking may drag the index towards 26,500 and 26,250 levels."
ANNOUNCEMENT OF KEY MACRO-ECONOMIC DATA
The government is scheduled to unveil the consumer price index (CPI) data for the month of September 2015 after market hours today. The all-India general CPI inflation was nearly flat 3.66% in August 2015 compared with 3.69% (revised) reading in July 2015.
The government will also release the industrial production data for August 2015 after market hours today, 12 October 2015. Industrial production rose at 4.22% in July 2015 compared with growth of 4.36% in June 2015.
GLOBAL MARKETS
Asian shares rose on Monday, extending an October rally, as investors hunted for bargains in industrials and basic materials, fueled by a rebound in commodities while the dollar struggled as hopes of a Fed rate rise this year grew even dimmer.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7%, extending an impressive 11% rise this month as investors unwound some of their long US dollar and short commodities and emerging markets trades.
China's shares led the region's markets higher with Hong Kong and Shanghai up more than 1% each. Korea was up 0.5% and Jakarta rose 0.6%. Japan is shut for a holiday.
On Wall Street, major indexes closed slightly higher on Friday, chalking up one of the best weekly performances so far this year. S&P 500 e-mini futures was broadly flat in Asian trading on Monday.
An unexpectedly weak US jobs report for September had led many investors to speculate that the Fed will not deliver its first hike since 2006 this year. Indeed, fed fund futures contracts were indicating a rate hike only in 2016.
SECTORS & STOCKS
BSE IT index has slumped by over 1% followed by counters like Consumer Durables, Banks and Realty, all declining marginally. However, BSE Metal and Auto indices are up 1% each.
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Shares of IT major Infosys has plunged by almost 4% post the announcement of Q2 numbers. Other notable losers are Cipla, SBI, HDFC, TCS and Wipro.
Among gainers, Vedanta, Tata Steel, Hindalco, Tata Motors and ITC are up 1-5%.
Among other shares, Bank of Baroda has dipped 8% to Rs 168 on the BSE in early morning trade on reports that the Central Bureau of Investigation (CBI) on Saturday carried out searches at the bank’s branches in New Delhi for alleged foreign exchange violations.
With Reuters input
