The News International Team
9:50 am Cut in IT budget: Three major global investment banks are likely to remove discretionary IT spending allocation in their budget for 2015, reports CNBC-TV18, quoting unnamed sources. This is the first time that many large global banks are removing IT spend allocation altogether from their budgets
It is learnt that UBS, JP Morgan and Goldman Sachs could be the three banks. UBS and JP Morgan declined to comment, while Goldman Sachs is yet to respond to the CNBC-TV18 query.
Citi is yet to decide on its IT spending budget, but said that it would be allocated on a requirement basis.
None of the abovementioned banks have given out any fresh contracts relating to discretionary spending.
9:40 am Market check: The market has sprung into action as the Sensex is up 125.79 points at 27827.58. The Nifty is up 33.30 points at 8357.30. About 1031 shares have advanced, 486 shares declined, and 54 shares are unchanged.
Axis Bank, Bajaj Auto, Tata Motors, BHEL and Infosys are up 1 percent each. Among the losers are Dr Reddy’s Labs, Hindalco, Wipro, Coal India and Reliance.
9:30 am Buzzing: Investors bought huge shares of Mukand after the company decided to transfer special and alloy steel business to its arm via slump sale.
“The board of directors on Monday approved a proposal to transfer its special and alloy steel business as a going concern by way of a slump sale to a subsidiary company for an enterprise value of Rs 1,590 crore,” said the alloy and stainless steel long products manufacturer in its filing to the exchange.
The transaction is subject to deduction of debt and net working capital adjustment as on the date of transfer. The net consideration will be paid in cash by the subsidiary, it added.
The steel and alloy business has an installed capacity of 3.7 lakh million tonne per annum.
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After the rally seen on Monday, the market has opened flat today. The Sensex is up 8.16 points at 27709.95 and the Nifty is up 0.60 points at 8324.60. About 386 shares have advanced, 191 shares declined, and 33 shares are unchanged.
M&M, NTPC, Tata Motors, Bharti Airtel and Coal India are top gainers in the Sensex. Among the losers are Dr Reddy’s Labs, HDFC Bank, Sun Pharma, Sesa Sterlite and Hindalco.
The market is keenly watching poll results as counting of votes for the 81-member Jharkhand Assembly began in 24 centres across the state today amid tight security. Counting of votes for the 87-member Jammu and Kashmir Legislative Assembly has also begun in early morning.
The Indian rupee opened marginally lower at 63.30 per dollar against the previous closing of 63.25. The dollar holds firm, having risen to its highest level in nearly nine years against a basket of major currencies, driven in part by persistent weakness in the euro and a fresh fall in the yen.
Ashutosh Raina of HDFC Bank said, “The upward march of USD continues amid thin trading in holiday season. The revival of risk appetite helped global equity markets end higher, with dollar broadly firm on divergent yield outlook.”
Globally, US markets ended higher leading the Dow and the S&P 500 to record finishes. European markets too closed with gains with the sentiment boosted by a rebound in the Russian ruble. Asian markets are positive.
In other asset classes, crude prices declined, with Brent Crude down 2 percent to USD 60 per barrel after Saudi Arabia’s Oil Minister said OPEC would not cut production at any price. Gold slipped below USD 1180 an ounce and silver slid 3 percent after US existing home sales fell to a six-month low, and as oil prices eased back.