Key benchmark indices extended gains in morning trade on good Q1 result from IT major TCS. The barometer index, the BSE Sensex, hit over 7-week high. The CNX Nifty hit 7-week high. The S&P BSE Sensex was up 80.65 points or 0.4%, up 58.54 points from the day's low and off 29.83 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
IT major TCS extended initial gains to strike fresh record high after reporting good Q1 results after trading hours on Thursday, 18 July 2013. Index heavyweight Reliance Industries turned positive from intraday low its Q1 June 2013 results today, 19 July 2013. Bajaj Corp recovered in volatile trade.
Container Corporation of India jumped after the company said its board will meet on 25 July 2013 to consider a proposal of issuing bonus shares to shareholders. Bayer CropScience hit record high after the company said that a meeting of the board of directors of the company will be held on 22 July 2013, to consider a proposal for buy-back of the company's equity shares. Indian Hotels Company and Raymond fell after the NSE removed both these scrips from the futures and options segment with effect from 27 September 2013. Jaiprakash Associates fell on turning ex-dividend today, 19 July 2013.
Key benchmark indices pared initial gains triggered by good Q1 result from IT major TCS. Key benchmark indices extended gains in morning trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 178.30 crore on Thursday, 18 July 2013, as per provisional data from the stock exchanges.
At 10:21 IST, the S&P BSE Sensex was up 80.65 points or 0.4% to 20,209.06. The index gained 110.48 points at the day's high of 20,238.89 in morning trade, its highest level since 30 May 2013. The index rose 22.11 points at the day's low of 20,150.52 in early trade.
The CNX Nifty was up 16.70 points or 0.28% to 6,054.75. The index hit a high of 6,066.85 in intraday trade, its highest level since 30 May 2013. The index hit a low of 6,035.60 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 646 shares gained and 492 shares fell. A total of 46 shares were unchanged.
The total turnover on BSE amounted to Rs 403 crore by 10:20 IST compared to Rs 160 crore by 09:30 IST.
Among the 30-share Sensex pack, 18 stocks declined and rest of them gained.
IT major TCS jumped 5.12% to Rs 1,745.90 after striking a record high of Rs 1,751 in intraday trade today, 19 July 2013. The company reported good Q1 results after trading hours on Thursday, 18 July 2013. TCS' net profit rose 5.9% to Rs 3831 crore on 9.5% growth in revenue to Rs 17987 crore in Q1 June 2013 over Q4 March 2013. Operating profit rose 12% to Rs 4847 crore in Q1 June 2013 over Q4 March 2013.
TCS said growth in Q1 June 2013 was seen across all industry segments, led by life sciences, retail, telecom and BFSI. There was balanced growth across IT and other service lines led by Assurance, EiS, Global Consulting and Asset Leveraged Solutions. Major markets grew smartly led by USA, Europe and UK alongside growth in emerging markets like Latin America and Asia Pacific, TCS said in a statement. The company added two new $100 million clients in Q1 June 2013.
During the quarter, TCS closed the acquisition of Alti, one of the top 5 system integrators of SAP solutions in France with several top French corporations in the banking, financial services, luxury, manufacturing and utilities sectors as its key customers.
TCS said it continued to hire employees to support business growth. There was a total gross addition of 10,611 people and net addition of 1,390 people in Q1 June 2013, taking the total employee strength to 277,586 on a consolidated basis. The utilization rate (excluding trainees) was at 82.7% and that including trainees was 72.5%. The attrition rate (LTM) dropped further sequentially to 10.52% including BPO. The attrition rate in IT was at 9.55%, while BPO attrition was higher at 15.77%.
Commenting on the Q1 performance, TCS Chief Executive Officer and Managing Director N Chandrasekaran said: "We have delivered another solid quarter, driven by the highest volume growth in the past seven quarters. It has been an all-round performance with strong revenue growth across markets led by the US. Our investments in Europe continue to gain strong traction with customers and helped us deliver industry-leading growth this quarter. Strong momentum in our business, the right cost structure, a customer-centric approach and our increasing investments in new digital solutions and services positions us well to post another year of strong business growth".
TCS Chief Financial Officer Rajesh Gopinathan said: "The current environment demands an agile operating model that can capture diverse growth opportunities. We continue to execute to plan and invest for growth, while maintaining stability in our margin profile".
Index heavyweight Reliance Industries rose 0.38% to Rs 920.50, with the stock recovering from intraday low of Rs 912.80 ahead of its Q1 June 2013 results today, 19 July 2013.
Bajaj Corp fell 0.65% to Rs 242.80 in volatile trade. The stock fell as much as 10.7% at the day's low of Rs 218.25. Bids were received for a total of 320 shares at an indicative price of Rs 205.51 per share for the Offer for Sale (OFS) of the company's shares till 09:55 IST, as per data from the stock exchanges. The company's promoter, SKB Roop Commercial LLP, is selling 1.43 crore shares of Bajaj Corp, constituting 9.75% of the equity share capital of Bajaj Corp, through Offer for Sale (OFS) via the stock exchanges mechanism today, 19 July 2013. The OFS began at 9:15 IST and ends at 15:30 IST. The floor price for the OFS has been set at Rs 200 per share.
Container Corporation of India jumped 4.98% to Rs 1,145.50 after the company said its board will meet on 25 July 2013 to consider a proposal of issuing bonus shares to shareholders. The company made the announcement after market hours on 18 July 2013.
Bayer CropScience surged 4.86% to Rs 1,737 after striking a record high of Rs 1,769 in intraday trade today, 19 July 2013. The company at fag end of the day's trading session on Thursday, 18 July 2013 said that a meeting of the board of directors of the company will be held on 22 July 2013, to consider a proposal for buy-back of the company's equity shares, constitution of buyback committee, and appointment of intermediaries in accordance with all applicable provisions of laws.
Indian Hotels Company declined 2.36% and Raymond fell 2.03% after the NSE removed both these scrips from the futures and options segment with effect from 27 September 2013. However, the existing unexpired contracts of expiry months for July, August and September would continue to be available for trading till their respective expiry and new strikes would also be introduced in the existing contract months, the NSE said.
Jaiprakash Associates shed 0.89% on turning ex-dividend today, 19 July 2013, for dividend of 50 paise per share for the year ended 31 March 2013 (FY 2013).
Asian markets were mostly lower as fund managers shift money from Asia to the U.S. amid concerns that growth is slowing in China and Japan's economic reforms may be losing steam. Key benchmark indices in China, Hong Kong and Indonesia rose 0.15% to 0.25%. Key benchmark indices in South Korea, Singapore and Taiwan were off 0.05% to 1.6%.
Japanese shares beat a sharp retreat after opening comfortably higher, with a wave of selling ahead of weekend elections in the country. The Nikkei 225 Average was off 1.45%. The volatility in Tokyo came ahead of the country's upper house elections this weekend, in which the ruling Liberal Democratic Party (LDP) is expected to easily clinch a majority. The LDP already has a majority in the lower house of the parliament, and a majority in the upper chamber of the Diet is widely expected to strengthen Prime Minister Shinzo Abe's government in its attempt to revive the Japanese economy.
Trading in US index futures indicated that the Dow could fall 44 points at the opening bell on Friday, 19 July 2013. US stocks rose on Thursday, 18 July 2013, after the second day of congressional testimony from Federal Reserve Chairman Bernanke and some upbeat earnings results, including from Morgan Stanley. The Dow Jones Industrial Average and S&P 500 reached record closing highs, with sentiment also boosted by Moody's Investors Service lifting its outlook on US credit ratings to stable and reaffirming the country's AAA sovereign rating.
Federal Reserve Chairman Ben Bernanke spent a second day on Capitol Hill on Thursday, discussing the outlook and Fed rate policy with the Senate Banking Committee. The Fed chief said that economic data since the last Fed rate-policy meeting have been "mixed" and it is "way too early" to make a judgment on when the central bank will slow down the pace of its asset purchases. He remained silent on his future plans during the two hour hearing before the Senate Banking Committee. As he had in a separate round of testimony of a panel in the House of Representatives on Wednesday, Bernanke said headwinds from a tightening of fiscal policy had held back growth, and that the economy should pick up pace once this drag fades away. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.
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