11:52 am Market rises:
The Sensex is up 126.38 points or 0.4 percent at 27957.92, and the Nifty is up 33.10 points or 0.4 percent at 8499.65.
About 1402 shares have advanced, 1016 shares declined, and 119 shares are unchanged.
11:50 am Market outlook: The Commercial Vehicle (CV) cycle is picking up and a lot of companies will see a rise in their operating profitability in the coming days. In particular, the auto ancillary space is a good bet due to strong earnings growth, says Taher Badshah of Motilal Oswal AMC. “Auto ancillaries is riding on the back of some of the large original equipment manufacturers (OEMs) and domestic OEMs as well as potential lot of exports.” Speaking about Indradhanush —the push that public sector banks have received — Badshah says it makes banks a reasonably good investment idea in the medium-term.
11:30 am Interview: Majesco, insurance arm of the Mastek, is listed today. The company’s US subsidiary called Majesco US was listed on the New York Stock Exchange (NYSE) on June 29 this year.
Majesco’s shares opened at Rs 316, disappointing investors as the street was expecting an opening price around Rs 390-400.
In an interview with CNBC-TV18, Ketan Mehta, Chief Executive Officer (CEO) of Majesco said the combined revenue of the two companies has been USD 106 million in FY15.
The company is looking to double its size of business, he said adding that the aim is to grow earnings before income, tax, depreciation and amortization (EBITDA) from current 5 percent to 12 to 14 percent over three years.
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Key indices recovered from morning lows to trade marginally higher with the Nifty above the 8450 mark led by gains in pharma, consumer durables and realty stocks. The Sensex is up 90.83 points at 27922.37 and the 50-share index is up 24.45 points at 8491. About 1386 shares have advanced, 851 shares declined, and 88 shares are unchanged.
Sun Pharma, Cipla, Lupin, Wipro and Reliance are top gainers while Hindalco, SBI, HDFC, Bharti and BHEL are losers in the Sensex.
Oil prices fell in Asia, giving up meagre gains in the previous session as investors await a US inventory report to gauge demand in the world’s top economy. Analysts said prices were unlikely to stage a sustained rally because the market remains awash with supplies from the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia.
Oil traders are also watching a report on US crude inventories in the week ending August 14 due later Wednesday to measure demand in the world’s biggest economy and large producer of shale oil.