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Sensex, Nifty flat; Infosys falls 3%, SpiceJet loses 9%

09:15

The News International Team

09:55am SPML Infra in News

SPML Infra has won new orders worth Rs 267 crore from Karnataka Urban Infrastructure
Development and Finance Corporation for 24X7 water supply system for three cities,
Sindhanur, Gadag-Betageri and Haveri with a combined population of 3.7 lakh.

These projects are part of Asian Development Bank (ADB) funded projects to improve urban services in 14 towns in north Karnataka. The project would help improve the quality of life in underdeveloped areas of the State with uninterrupted clean drinking water supply.

SPML has received these performance-based management contracts to design and construct the infrastructure of the distribution networks, provide metered connections and operate and maintain the facilities for 5 years. The stock gained 4 percent.

09:35am FII View

Neelkanth Mishra, Credit Suisse believes the market is likely to continue to pay more for growth, and the Indian market is not expensive yet. “It is likely to see the strongest earnings growth, with among the least severe downward revisions,” he says.

He expects the market to prefer companies with strong medium-term earnings growth visibility.

09:15am Market Check

Equity benchmarks opened marginally lower on first day of the week led by Infosys. The Sensex fell 5.64 points to 28452.46 and the Nifty declined 5.30 points to 8533.

About 742 shares have advanced, 316 shares declined, and 65 shares are unchanged on the BSE.
 
Infosys plunged more than 3 percent after 3.3 crore shares traded in multiple blocks on BSE, NSE in early trade.

TCS, Sesa Sterlite, IndusInd Bank, HCL Technologies, Hero Motocorp and Bajaj Auto were marginally down. However, Jindal Steel, Coal India, UltraTech Cement, ITC, Asian Paints, BHEL, Sun Pharma and Bharti Airtel gained 0.7-1.5 percent. 

In the broader space, SpiceJet plunged nearly 9 percent after sources told CNBC-TV18 that Directorate General of Civil Aviation (DGCA) withdrew 186 slots of company.

The Indian rupee slipped in the early trade. It has opened lower by 21 paise at 61.98 per dollar versus 61.77 Friday.

Dollar traded at its highest in over five years against a basket of major currencies, having rallied hard late last week on the back of a surprisingly robust US employment report.

Agam Gupta of Standard Chartered said, “The US jobs data on Friday evening was stronger than expected and this has led to dollar strengthening against other currencies.”

“The USD-INR should trade in a range of 61.80-62.15/dollar today. Any upticks will attract exporter hedging and dips to 61.80-61.85/dollar will attract bids from local government owned banks,” he added.

On the global front, Asian equities kicked off the week mixed as key data from Japan and China outweighed a strong US jobs report on Friday.

Japan’s revised third-quarter gross domestic product (GDP) showed the economy shrank more than initially estimated, with growth contracting an annualized 1.9 percent. Meanwhile, October’s current account balance showed a surplus of 833 billion yen, better than expectations for a surplus of 366 billion yen. Focus now turns to Chinese trade data due later in the day.

Meanwhile, the S&P 500 and Dow ended at record highs last week after US employers created 321,000 jobs last month, the largest gain since January 2012. The unemployment rate remained unchanged at a six-year low of 5.8 percent.

In commodities, Brent crude slipped to USD 68 as market grappled with oversupply due to the US shale boom and the recent decision by the OPEC not to cut production.

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