The News International Team
9:55 am Buzzing: Shares of Infosys jumped over 2 percent intraday on Friday as investors celebrate clenching its first big deal under new leadership of Vishal Sikka. The IT firm bagged five –year deal worth USD 500 million with BP.
As per the agreement, Infosys will provide IT services across BP’s operations, including corporate functions, upstream, and downstream segments, energy trading and marketing in Houston, Texas, UK, Azerbaijan, Angola, Brazil and Singapore.
9:30 am Market opinion: Hans Goetti, Head of Investment – Asia, Banque Internationale says with the European Central Bank (ECB) cutting rates there will be outflow of money from euro into US dollars.
He says the ECB has delivered more than the market expected, which could eventually lead to quantitative easing and expansion of ECB balance sheet.
According to him the technical support fot the euro is around 1.28 levels in the near-term but it could also see levels of 1.20 in the medium-term in case the ECB follows through with expansion of its balance sheet and the Fed at the same time keeps tapering by not expanding the balance sheet.
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After a resting day, the market seems to be picking up pace slightly again. The Sensex is up 52.05 points at 27137.98 and the Nifty is up 3.95 points at 8099.90. About 427 shares have advanced, 163 shares declined, and 37 shares are unchanged.
Infosys, Wipro, Reliance, NTPC and Cipla are big movers in the Sensex. Among the losers are Tata Power, GAIL, ONGC, Hindalco and Bharti Airtel.
The Indian rupee has opened at 60.44 a dollar, down by 9 paise compared to previous day’s closing value of 60.35 a dollar.
Pramit Brahmbhatt, Veracity says investors are likely to trade cautiously today post the profit booking in the equity market yesterday. “The series of US data expected today will help investors gauge the market,” he adds.
He expects the rupee to trade range bound to slightly weak. Meanwhile, the euro skid below 1.30 to the dollar suffering its biggest one-day fall in nearly three years after the European Central Bank delivered a fresh round of stimulus and promised even more if needed.
In the US, stocks erased record-setting gains on turning lower in a late-session shift as cheer over the European Central Bank’s unexpected rate cut faded, a day ahead of the monthly payrolls report. Non-farm payrolls are estimated to show that economy created 225,000 jobs in August.
In commodities, crude prices slipped following a strong dollar, hitting commodities priced in the US currency.From precious metals space, gold slipped as dollar rallied on ECB rate cuts.