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HCL Tech gains after a large overseas order win

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A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday low in morning trade. The barometer index, the S&P BSE Sensex, was down 28.83 points or 0.13%, up about 25 points from the day's low and off close to 50 points from the day's high. The market breadth, indicating the overall health of the market, was positive.

HCL Technologies edged higher after the company bagged a $400-million contract from Norway's DNB Bank ASA to provide IT infrastructure services and application operations. Telecom stocks declined.

The market edged lower amid initial volatility. Key benchmark indices trimmed losses after hitting fresh intraday low in morning trade.

 

Foreign institutional investors (FIIs) bought shares worth a net Rs 45.93 crore on Tuesday, 6 May 2014, as per provisional data from the stock exchanges.

At 10:20 IST, the S&P BSE Sensex was down 28.83 points or 0.13% to 22,479.59. The index fell 52.93 points at the day's low of 22,455.49 in morning trade, its lowest level since 5 May 2014. The index rose 24.40 points at the day's high of 22,532.82 in early trade.

The CNX Nifty was down 9.75 points or 0.15% to 6,705.55. The index hit a low of 6,699.10 in intraday trade, its lowest level since 5 May 2014. The index hit a high of 6,718.75 in intraday trade.

The BSE Mid-Cap index was up 44.72 points or 0.61% at 7,415.41. The BSE Small-Cap index was up 30.53 points or 0.41% to 7,563.36. Both these indices outperformed the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,022 shares gained and 787 shares fell. A total of 118 shares were unchanged.

Among the 30-share Sensex pack, 17 stocks declined and rest of them rose. Hindalco Industries (down 1.26%), Wipro (down 1.2%) and HDFC (down 1.16%) edged lower from the Sensex pack.

HCL Technologies rose 1.02%. HCL Technologies and DNB Bank ASA, Norway's largest bank and one of the world's leading maritime shipping banks, today, 7 May 2014, announced $400 million strategic engagement. HCL will manage the IT infrastructure services and application operations for all DNB businesses across Norway and its key international locations.

As part of the deal HCL will migrate and transform DNB systems and infrastructure from its existing IT partner to create two new data centers in Norway. The key focus will be driving a world-class user experience to the bank's 2.5 million retail banking customers and end-users across all DNB's products, including retail and online banking, cards, insurance, capital markets, payments and finance, HCL Technologies said in a statement.

Telecom stocks declined. MTNL (down 0.59%), Tata Teleservices (Maharashtra) (down 0.12%), Reliance Communications (down 0.43%) and Bharti Airtel (down 1.28%) declined. Idea Cellular rose 0.23%.

Titan Company rose 0.96% after net profit rose 11.61% to Rs 206.44 crore on 7.04% increase in total income to Rs 2828.88 crore in Q4 March 2014 over Q4 March 2013. The company announced the result at the fag end of the trading session on Tuesday, 6 May 2014. Titan Company's net profit rose 1.32% to Rs 734.94 crore on 8.05% increase in total income to Rs 11047.61 crore in the year ended March 2014 over the year ended March 2013.

Titan Company said this performance came in the backdrop of a challenging economic environment which was met by the talent and commitment of employees and business associates that helped Titan Company register this growth in a difficult year. The strength of company's brands contributed to sales growth across all retail formats of watches, jewellery and eyewear.

The watches business of the company recorded an income of Rs 1790.80 crore, a growth of 6.9%. This was achieved through meticulous planning and execution of key initiatives. The income from jewellery segment grew by 6.5%, crossing the Rs 8500 crore mark to Rs 8632.03 crore. The income from other segments comprising of precision engineering, a B2B business, the eyewear business and accessories grew by 20.7% to Rs 499.79 crore.

The year witnessed aggressive expansion of its retail network with a net addition of 125 stores by watches, jewellery and eyewear businesses. As on 31 March 2014, the company had 1078 stores, with over 1.5 million square feet of retail space delivering a retail turnover in excess of Rs 10900 crore.

Commenting on the financial performance, Mr. Bhaskar Bhat, Managing Director, Titan Company said: "The year 2013-14 was a challenging year given the economic environment that was subdued. The year also witnessed other adverse factors like the regulatory changes that impacted our jewellery business. The company will however continue to invest in strategic initiatives taking into account our long term and sustainable growth plans. Given the expectations of our stakeholders and aspirations of our employees, we move confidently into the new financial year with aggressive plans."

Gati rose 6.25% after consolidated net profit surged 83% to Rs 13.80 crore on 20% increase in turnover to Rs 386.50 crore in Q3 March 2014 over Q3 March 2013. The company announced the result after market hours on Tuesday, 6 May 2014.

Gati's consolidated earnings before interest taxes depreciation and amortization (EBITDA) rose 43% to Rs 32.20 crore in Q3 March 2014 over Q3 March 2013.

Commenting on the company's quarterly performance, Mr. Mahendra Agarwal, Founder & CEO, Gati said, Gati has continued to be resilient to the economic slowdown due to high operational efficiency, specialised service offerings, aggressive stance on new business development and time-definite delivery services. Our foray in the e-commerce segment and innovation by offering value-added services has opened up opportunities that are we are harnessing to realise to full potential.

Going forward, we are upbeat on the performance of EDSC and e-commerce businesses with the opening up of the market to new players and a pick-up in trade, he added.

Gujarat Pipavav Port surged 12.53% after net profit jumped 72.51% to Rs 61.02 crore on 25.49% growth in total income from operations to Rs 156.20 crore in Q1 March 2014 over Q1 March 2013. The Q1 result was announced after market hours on Tuesday, 6 May 2014. Exceptional item in Q1 March 2014 represents payment made by the company in January 2014 amounting to Rs 10.22 crore towards mobilization and other services in relation to the dredging activity undertaken as part of the port expansion project. Consequent to the revision in the said port expansion plan approved by the Board of Directors of the company in its meeting dated 17 April 2014, this amount is fully written off, Gujarat Pipavav Port said.

In the foreign exchange market, the rupee edged higher against the dollar on speculation Federal Reserve Chair Janet Yellen will reiterate a pledge to keep US interest rates low in testimony later in the global day today, 7 May 2014. The partially convertible rupee was hovering at 60.02, compared with its close of 60.11/12 on Tuesday, 6 May 2014.

The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.

A major near term trigger for the stock market is the outcome of the Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.

Asian shares fell on Wednesday, 7 May 2014, amid mounting concern China's economy is slowing after the result of a survey released by HSBC Holdings Plc and Markit Economics showed that services index for China declined in April from March. Key benchmark indices in Japan, Hong Kong, China, Singapore, South Korea and Taiwan were down 0.27% to 2.35%. Indonesia's Jakarta Composite rose 0.15%.

A services index in China from HSBC Holdings Plc and Markit Economics dropped to 51.4 in April from 51.9 in the previous month.

Most members of the Bank of Japan agreed to keep easing monetary policy until inflation stabilizes at 2%, according to minutes of the April 7-8 policy meeting released today, 7 May 2014.

Trading in US index futures indicated that the Dow could slide 11 points at the opening bell on Wednesday, 7 May 2014. US stocks dropped broadly on Tuesday, 6 May 2014, closing at session lows, with AIG pulling financial shares lower after disappointing earnings and as a slide in Twitter took down other names in the technology and internet space.

US Federal Reserve Chairwoman Janet Yellen is due to testify to US lawmakers later in the global day today, 7 May 2014.

The US trade deficit narrowed in March as exports grew by the most in nine months, the Commerce Department reported yesterday, 6 May 2014.

In Europe, a monthly meeting of the Monetary Policy Committee of the Bank of England's (BoE) for monetary policy review is scheduled tomorrow, 8 May 2014.

The European Central Bank (ECB) will hold monetary policy meeting tomorrow, 8 May 2014, in Brussels, Belgium.

The global economy will strengthen over the coming two years, but urgent action is still required to further reduce unemployment and address other legacies from the crisis, according to the OECD's latest Economic Outlook.

"Advanced economies are gaining momentum and driving the pick-up in global growth, while once-stalled cylinders of the economic engine, like investment and trade, are starting to fire again," OECD Secretary-General Angel Gurr said while launching the Outlook during the Organisation's annual Ministerial Council Meeting and Forum in Paris.

GDP growth across the 34-member OECD is projected to accelerate to a 2.2% rate in 2014 and 2.8% in 2015, according to the Outlook. The world economy will grow at a 3.4% rate in 2014 and 3.9% in 2015.

Among the major advanced economies, recovery is best established in the United States, which is projected to grow by 2.6% in 2014 and 3.5% in 2015. The euro area will see a return of positive growth after three years of contraction: 1.2% in 2014 and 1.7% in 2015. In Japan, growth will be dented by the launch of much-needed fiscal consolidation measures, and is expected to hover at 1.2% in 2014 and 2015.

The BRICS (Brazil, China, India, Indonesia, Russia and South Africa) are projected to see GDP growth of 5.3% this year on average and 5.7% in 2015. China will again have the fastest growth among these countries, with rates just below 7.5% in 2014 and 2015.

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First Published: May 07 2014 | 10:18 AM IST

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