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Nifty struggles below 8200; HDFC twins, Infosys, LT gain

12:00

The News International Team

12:55pm Market Update

The Sensex declined 22.18 points to 27186.43 while the Nifty rose 2.60 points to 8176.70. About 1253 shares have advanced, 1229 shares declined, and 114 shares are unchanged.

12:40pm Zensar in Focus

Investors bought more shares of Zensar Technologies after the software services provider bagged multi-million dollar deals in its infrastructure management (IM) business in the US.

“We are delighted with the traction in the IM managed services business and are also getting wins in new areas like end user experience management,” said Ganesh Natarajan, vice chairman and CEO of the company.

The deal pipeline in enterprise applications and infrastructure management is strong, he adds. “We look forward to a good year in 2015-16,” says Natarajan.

The company recently signed several new deals in infrastructure management, including contracts from financial services firm, US-based life science tools and molecular diagnostic products company, international digital security company etc.

Recently Zensar signed partnership with Aternity Inc, to expand its managed services footprint globally for end user experience management.

12:25pm Market Expert

Rahul Arora, CEO, Nirmal Bang Institutional Equities says the house has a positive outlook for 2015 and sees Nifty around 9500 plus/minus 5 percent by Diwali next year backed by strong fundamentals.

The house expects earnings to pick up towards the backend of FY16 and there is a definite case for interest rates to come down. They also expect a stable global scenario going forward with respect to oil, Ukraine and clarity on US interest rates.

Every dip in the market should be utilised as a buying opportunity, says Arora. Even today’s levels could be an entry point for the long-terms investors, he adds.

Speaking about the expectations from the Budget, he says foreign institutional investors (FIIs) would be watching it far more keenly than domestic investors and in case the Budget delivers on expected lines, then there could get the big delta in direction of 9500 for the Nifty.

12:00pm Market Check

The 50-share NSE Nifty remained in a consolidation mode on the first day of January series. The Nifty retraced after touching the 8,200 mark in early trade, up 5.6 points to 8179.70 while the broader markets marginally outperformed benchmarks with the advance decline ratio favouring the advances.

The 30-share BSE Sensex declined 11.27 points to 27197.34 while the BSE Midcap and Smallcap indices gained 0.2-0.4 percent.

Shares of ITC, Tata Motors, HUL and Maruti Suzuki were major contributors to the Sensex fall, down over a percent while HDFC, Infosys, L&T, HDFC Bank, SBI, Axis Bank, Sun Pharma, Coal India and Sesa Sterlite supported with more than half a percent gains.

Power Grid was among the top gainers on Nifty. Reports suggested that the power ministry has invoked provision of “compressed time schedule” to award 8 new transmission projects to the company. The estimated cost for these 8 projects is seen at Rs 36,000 crore.

Bharti Airtel was in focus after the company hiked rates for voice over internet protocol calls, like skype or viber. Kotak says this move is aimed at making VOIP calls more expensive compared to legacy voice calls.

Other stocks in focus include Reliance Capital. The stock gained 0.9 percent after Sumitomo Mitsui picked up 2.77 percent stake for Rs 371 crore. Reliance Capital says this is the first step and an increase in stake will be discussed further.

SpiceJet rallied 8 percent as the company is expected to provide a revival plan to the government today. Reports indicated that JPMorgan Chase and former founder Ajay singh is planning to invest USD 200 million in the beleagured airline and the deal is likely to be finalised in the next 6 weeks.

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