The News International Team
Live Market Commentary
03:30 Market closing
The market ended the day with a roar. The Sensex ended 480.92 points or 1.81 percent higher at 27112.21 and the Nifty was up 139.25 points or 1.75 percent at 8114.75. About 2233 shares have advanced, 827 shares declined, and 93 shares were unchanged.
Hero MotoCorp was up 6 percent while L&T, HDFC, Dr Reddy’s and BHEL gained 4 percent each.
Among the losers were Infosys, HUL and Sesa Sterlite.
02:55pm Maruti in News
Maruti Suzuki India today said voting by minority shareholders over its move to let parent Suzuki Motor Corp own and invest in Gujarat plant will likely happen in November instead of October as earlier envisaged.
“It is a long procedure and we have not been able to put all the things in place. So we won’t be able to do it in October. It is highly probable that the voting will be in November,” Maruti Suzuki India Chairman R C Bhargava said on the sidelines of a conference on Public Affairs here, reports PTI.
02:40pm Infosys signs deal
Infosys Ltd said it signed a global partnership with China’s largest telecom equipment maker Huawei Technologies Company to offer enterprise customers cloud, big data and communication solutions.
The companies did not say how much the deal was worth. Huawei and Infosys will also provide other enterprise-oriented services to combine Huawei’s cloud infrastructure and global IT service expertise from Infosys, the companies said in a statement.
Infosys, led by Chief Executive Vishal Sikka, has been planning to boost investment in cloud computing, smartphone apps and other new technologies to win more high-margin outsourcing contracts.
Huawei and Infosys will explore setting up a joint lab in China to enable better delivery in all areas of the partnership, the companies said, reports Reuters.
In an interview to CNBC-TV18, Mithun Chittilappilly, Managing Director, V-Guard Industries, said the company’s second quarter performance so far has been quite satisfactory, thus it is sticking with its guidance of top line growth of 20 percent year on year.
The company expects EBITDA margins to be between 8.5 percent and 9 percent on the back of operating leverage. It expects margins for the fan business to improve by 6 percent.
V-Guard has a 20 percent market share in stabiliser segment and 8 percent in wire segment, the company said.
02:20pm L&T in demand
Larsen and Toubro gained 3 percent after Oman subsidiary bagged order for building Adam airbase.
The buildings and factories business of L&T Oman LLC, a subsidiary of L&T, has won a order from the Ministry of Defense, Sultanate of Oman against stiff international competition for the construction of Adam airbase in Al Dakhiliya Governorate, said the company in its filing.
This is the fifth order received by L&T group in September. Excluding today’s order, the group has bagged nearly Rs 11,000 crore worth of contract in the current month.
02:10pm FII View
The Federal Reserve has said that it was nearing the end of its asset purchases and reiterated it would not hike interest rates for a ‘considerable’ period. CNBC-TV18 spoke to Hans Goetti, head of Asia Investment at Banque Internationale À Luxembourg, to know how this move will impact the global markets going ahead.
According to Goetti, emerging markets are going to benefit from Fed not willing to raise interest rates anytime soon. He maintains that the Indian market will be re-rated or revalued on the upside because of the changed political landscape and remains very bullish on India for the next two-three years.
“India has the potential to become the fastest growing economy in Asia by that time period,” he adds.
02:00pm Equity benchmarks remained strong in afternoon trade as India signed several agreements with China for co-operation in various sectors and strengthening strong relations between countries.
The Sensex climbed 427.24 points or 1.60 percent to 27058.53 and the Nifty rose 123.20 points or 1.54 percent to 8098.70. The broader markets too traded strong with the BSE Midcap and Smallcap indices gaining 1.6 percent and 2.5 percent, respectively.
About 2132 shares have advanced, 820 shares declined, and 79 shares are unchanged.
All sectoral indices remained strong with the BSE Realty, Capital Goods, Auto, Bank, Power, Oil & Gas, Healthcare and Metal rising 1-4 percent.
Hero Motocorp, Bajaj Auto, Dr Reddy’s Labs, HDFC, Larsen and Toubro, BPCL and DLF topped the buying list, up 3-5 percent.
Railway stocks like Texmaco Rail, Kalindee Rail, Titagarh Wagons, Stone India and Kernex Microsystems gained 3-7 percent after Indian Prime Minister Narendra Modi and Chinese President Xi Jinping have signed memorandum of understanding (MoU) on extending co-operation in rail, including agreement for new Mansarovar route.