India : Sensex, Nifty open flat; HCL Tech jumps 5%, ITC HDFC down
Wed Aug 03 2016
Rajesh Sharma (2002 articles)

India : Sensex, Nifty open flat; HCL Tech jumps 5%, ITC HDFC down

The market has opened flat with the Nifty still below 8650. The 50-share index is at 8617.35, down 6 points while the Sensex is at 27946.03, down 35.68 points.

Tata Motors, Asian Paints, L&T, Sun Pharma and Lupin are gainers while HDFC twins, TCS and ITC are major losers. HCL Tech is up 5 percent on its result.

The Indian rupee opened with marginal gain of 3 paise at 66.70 per dollar versus previous close of 66.73. Yen at a three-week high after Japanese government’s fiscal plans underwhelmed investors.

Country’s fourth largest IT services exporter HCL Technologies started off financial year 2016-17 on a strong note by beating analysts’ expectations on all parameters. Profit and revenue increased by 6.3 percent and 6 percent to Rs 2,047 crore and revenue at Rs 11,336 crore on sequential basis, respectively.Profit was estimated at Rs 1,890 crore on revenue of Rs 11,255 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

“Growth momentum is broad–based, encompassing all sectors and service lines, propelled by our robust 21 Century Enterprise strategy and robust business model”, Anant Gupta, President & CEO, HCL Technologies said.

The Petroleum Ministry is not considering any proposal to merge 13 state-owned oil PSUs like ONGC , IOC and GAIL to create a behemoth, Oil Minister Dharmendra Pradhan said today. “Ministry is not considering any proposal (for merger). It is an idea which was reportedly mooted by a Director of a state-owned company and like all ideas have to be debated, we are debating it,” he said here. His ministry has 13 PSUs ranging from upstream oil producers like ONGC and Oil India to downstream oil refining and fuel marketing firms IOC, BPCL and HPCL to gas transporter GAIL India Ltd to engineering firm Engineers India.

Among global peers, Asian shares bowed lower while the yen lorded over a weakened US dollar as talk that Bank of Japan may retreat from its massive bond-buying campaign twigged a shakeout in debt markets globally. MSCI’s broadest index of Asia-Pacific shares outside Japan. Japan’s Nikkei lost 1.4 percent as the rising yen pressured exporter stocks while financials slid 2.7 percent.

Japanese bonds have suffered their worst sell-off in more than three years as investors feared the BoJ was out of easing ammunition and might leave it to fiscal policy to stimulate the economy.

Wall Street stocks fell on Tuesday, with each of the major indexes notching their worst day in about a month as economic data and weaker-than-expected auto sales spurred concerns about growth.

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.

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