Home / Business / Money / Sensex, Nifty choppy; Majesco debuts at Rs 316, Cipla up 2%

Sensex, Nifty choppy; Majesco debuts at Rs 316, Cipla up 2%


TheNewsInternational Team

10:59 am Market Update:

The Sensex gained 83.17 points at 27914.71 and the Nifty rose 22.85 points to 8489.40. About 1400 shares have advanced, 846 shares declined, and 90 shares are unchanged on the BSE.

10:50 am Coal prices at 12-year low:

Coal futures have fallen to 12-year lows, hit by soaring production and a slowdown in global buying, including from India and China which until recently have been pillars of strong demand.

Benchmark API2 2016 coal futures last settled at USD 52.85 a tonne, a level not seen since November 2003.

The contract is now over 75 percent below its 2008 all-time peak and more than 60 percent below its most recent high following the 2011 Fukushima nuclear disaster in Japan.

The steady and sharp fall in coal prices has knocked down shares of big mining companies like BHP Billiton, Glencore and Rio Tinto, and it has seen many financers exit the sector.

The price fall follows a rise in output from exporters like Australia at the same time as a sharp slowdown in overseas orders from major importers like the United States, and now also China and India.

10:25 am Interview: Majesco, insurance arm of the Mastek, got listed on the market on Wednesday. The company’s US subsidiary called Majesco US was listed on the New York Stock Exchange (NYSE) on June 29 this year.

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 billion 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.

The company currently has 140 clients. In the quarter gone by, Majesco signed seven new deals of which three were with tier-I insurance companies. The company plans to invest 12-14 percent of its revenues on research & development (R&D), he said.

The company is open to acquisition in the Indian and US market, Mehta said.

10:00 am Market Check

The market continued to see selling pressure amid consolidation. The Sensex fell 31.86 points to 27799.68 and the Nifty declined 15.35 points to 8451.20, dragged by FMCG, HDFC twins, capital goods and select autos. However, technology and pharma gained strength on further weakness in rupee.

The broader markets recouped early losses, up marginally. About 1068 shares have advanced, 792 shares declined, and 68 shares are unchanged on the Bombay Stock Exchange.

Majesco, the insurance subsidiary of Mastek, has opened at Rs 316 against previous close of Rs 438.05 on the National Stock Exchange. The stock rallied 5 percent to Rs 331.80 compared to its opening price.

Cipla and Sun Pharma topped the buying list, up more than 2 percent followed by ICICI Bank, Lupin, Reliance Industries, Infosys, Wipro, Dr Reddy’s Labs, Tata Motors, TCS and Vedanta with 0.2-1 percent upside.

However, Bharti Airtel plunged nearly 3 percent. HDFC Bank, HDFC, ITC, Larsen & Toubro, Axis Bank, M&M, HUL, Hindalco and Coal India declined 0.5-1 percent.

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