Infy poor show spooks St, Nifty ends below 5300
Market says it all: TCS a hands-down winner

Money Jul 13, 2012

TCS results pull Nifty higher, IT index reverses losses

By Firstbiz Staff

The Indians market open on a flat-to-positive note as the optimistic cues from the regional peers are likely to help the markets make some recovery.The Sensex opens 60 points higher around 17295.08 levels and the Nifty open around 25 points higher at around 5261.20 levels with TCS as the top Nifty gainer. But there is still no respite for Infosys, which is down 1.3 percent. The stock continues to be the biggest loser on the BSE IT index. However, the IT index, helped by TCS, seems to have reversed its losses and is currently the top traded index, up 0.6 percent.

TCS is the top Nifty gainer

The Indian benchmarks suffered a cut of around a percent and half in last session, though the industrial production data came in better than expected but the market mood remained somber since beginning after IT bellwether Infosys came with a lower than expected numbers and gave a 5 percent growth guidance for the year, much lower than its earlier projection. However, the number one IT company, Tata Consultancy Services (TCS), came out with better results, but after the markets closed, posting a 37 percent rise in net profit in the first quarter to Rs 3,317.7 crore.

This morning major Asian indices recovered from session lows after China's second-quarter GDP came in line with estimates. Also, investors are hoping for some more stimulus measures to be announced by the Chinese policy makers after Q2 GDP growth hit a three-year low.

Meanwhile the telecom companies are likely to be buzzing as the Empowered Group of Ministers (EGoM) on telecom headed by P Chidambaram agreed to a proposal to allow telecommunication companies to mortgage spectrum to raise funds from banks to buy airwaves, though the EGoM will meet again early next week to decide on crucial decisions like fixing base price.

Investors will also be eyeing the inflation numbers, which are due today.

HDFC Bank and Sintex Industries are the results to keep on one's radar today. HDFC Bank is up 1 percent ahead of its results.

SKS Microfinance is up half a percent after it launched its QIP late last night to raise up to Rs 278.5 crore at Rs 75.40 a share. This will be at a 17 percent discount to yesterday's closing price. The company has said that funds will be used to augment the capital base of the company and to support business expansion. The book closed at 8.30 am today morning.

The Andhra Pradesh Pollution Control Board has asked 12 pharma units to shut down. Aurobindo , Divi's Lab , SMS Pharma's AP units get closing orders.

Cash strapped MTNL to weigh selling surplus land valued at Rs 3000 cr, also expects refund of Rs 4500cr for broadband wireless. Looking at reducing staff strength which is currently at 42K employees. Aims at reducing its debt significantly.

by Firstbiz Staff

Related Stories.