A range bound movement was witnessed as key benchmark indices alternately swung between positive and negative zone near the flat line in afternoon trade. At 13:17 IST, the barometer index, the S&P BSE Sensex, was off 3.69 points or 0.01% at 27,075.82. The 50-unit CNX Nifty was down 0.45 points or 0.01% at 8,189.25. The market breadth indicating the overall health of the market was positive. On BSE, 1,397 shares gained and 1,124 shares fell. A total of 110 shares were unchanged. The BSE Mid-Cap index was up 0.48%. The BSE Small-Cap index was up 0.42%. Both these indices outperformed the Sensex.
Auto stocks witnessed a mixed trend. Shares of oil exploration and production (E&P) companies gained as global crude oil prices edged higher. Bharat Heavy Electricals (Bhel) edged higher after the company announced a surge in project commissioning. 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.
In overseas stock markets, European stocks edged higher in early trade. Chinese stocks led gains in Asian markets on stimulus measures from China and signals of reform in China's telecommunications sector. In mainland China, the Shanghai Composite ended with gains of 3.28%. China's central bank announced over the weekend that it will expand a relending trial to nine more cities and provinces, including Shanghai and Beijing. The plan, currently in place in Shandong and Guangdong, allows banks to pledge certain assets to secure loans from the central bank.
Auto stocks witnessed a mixed trend. Mahindra & Mahindra (M&M) (up 0.46%), Ashok Leyland (up 0.81%), Tata Motors (up 2.84%), Hero Motocorp (up 0.89%) and TVS Motor Company (up 1.01%) gained. Maruti Suzuki India (down 0.02%), Eicher Motors (down 0.68%), and Bajaj Auto (down 0.44%) declined.
Shares of oil exploration and production companies gained as global crude oil prices edged higher. ONGC (up 1.24%), Oil India (up 0.16%), Reliance Industries (RIL) (up 1.19%) and Cairn India (up 1.84%) gained. Higher crude oil prices would result in higher realizations from crude sales for oil exploration firms.
Crude prices edged higher on global commodity markets on declining US oil rig count and indications that major oil producers are ready to jointly tackle the prolonged low prices. Brent for November settlement was currently up 41 cents at $53.06 a barrel. The contract had fallen 40 cents or 0.75% to settle at $52.65 a barrel during the previous trading session. Brent for December settlement was currently up 41 cents at $53.32 a barrel.
Bharat Heavy Electricals (Bhel) rose 3.04% after the company said during market hours today, 12 October 2015, that it has commissioned 2,730 megawatts (MW) of utility power projects in the first half of the year ending 31 March 2016 (FY 2016), which is double the power projects of 1,167 MW commissioned in the first half of the year ended 31 March 2015 (FY 2015).
Index heavyweight L&T rose 0.87% to Rs 1,559.50. The stock hit high of Rs 1,565.20 and low of Rs 1,549.10 so far during the day.
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 2% at Rs 1,144.50. 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.
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.
Inox Wind rose 2.14% after the company said it has bagged an order for a 50 megawatts (MW) wind power project at Lahori in the state of Madhya Pradesh from Tata Power Renewable Energy (TPREL). The order is TPREL's third project with Inox Wind after two previous orders of 172 MW. TPREL is a 100% subsidiary of Tata Power. As part of the turnkey order, Inox Wind will provide TPREL with end to end solutions from development and construction to commissioning and providing long term operations and maintenance services. The announcement was made during trading hours today, 12 October 2015.
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