Sensex opens higher as tech stocks lead rally

Livemint
October 24, 2019
By- Ravindra N. Sonavane

Indian markets opened 0.5% higher on Thursday led by gains in information technologies stocks. Investor sentiment also received a boost after early trends gave indications of Bhartiya Janata Party returning to power in Maharashtra and Haryana.

At 9.30 am, the Sensex rose 0.6% to 39,276.27 points, while the Nifty gained 0.54% to 11,666.90 points.

According to early trends, the BJP and its alliance is likely to get 114 seats in Maharashtra and 38 seats in Haryana.

US indices ended with gains as oil prices rallied. Energy stocks led gainers. Asian indices opened in the black led by the Nikkei as Microsoft earnings saw Dow Jones futures rise. China will witness more traction as Yuan strength are likely to see good ETF flows with earnings being the catalyst.


IT stocks were also trading higher. HCL Technologies gained 4% after the company posted a 6.9% rise in its consolidated net profit to ₹2,711 crore for the September quarter, and raised its revenue growth forecast to 17% for 2019-20. The company announced a bonus share offer — one bonus share for every share held.

Among other tech stocks, Tech Mahindra rose 2%, TCS 0.5% and Infosys gained 0.4%.

Larsen & Toubro gained 1.6% after it reported a net profit growth of 13.3% to ₹2,527 crore on a year-on-year basis for the September 2019 quarter.

Meanwhile, of the 17 Nifty companies that have reported results so far, 10 have either met or exceeded analyst expectations. One did not have estimate.

Corporate earnings have been muted throughout the year and is expected to be tepid in the near-to-medium term as well. Earnings risks continue to be tilted to the downside on account of the underlying weak demand scenario, the uneven asset quality trends in financials and the deflationary trends in commodity prices, Motilal Oswal said in a note to its investors.

"Thus, for 2QFY20, we expect Nifty sales/EBITDA/PAT to decline by 2%/2%/8%. The reduction in the corporate tax rate has brought some cheer to earnings, but for FY20, it will largely limit the earnings downgrades rather than drive big upgrades. The silver lining to this somber backdrop is that the festive season demand has begun on a positive note. Thus while we are expecting 12% EPS growth in FY20 for Nifty, we are estimating strong revival of 28% growth in FY21," according to the report.

Comments

Post a Comment

Popular posts from this blog

India Joins Russia in Voting Against West-Backed Move to Expand Powers of OPCW

The Wire: June 28, 2018 New Delhi: India voted against a UK-backed move that will allow the global chemical weapons watchdog to apportion blame for illegal attacks, criticising the decision to grant “unchecked powers” to the head of the group which could be used for “partisan” purposes. On Wednesday, more than two-thirds of the member states of the Organisation for the Prohibition of Chemical Weapons (OPCW) voted to authorise the international body to identify the perpetrators and sponsors of a chemical weapons attack. It also specifically called on the OPCW’s technical secretariat to begin work on identifying the perpetrators behind the use of chemical weapons in Syria. The draft decision, sponsored by 30 countries, was adopted at the fourth special session of the conference of the states parties to the Chemical Weapons Convention at the Hague, with 82 in favour and 24 negative votes. While Europe, the United States and their allies voted ‘yes’, there was strong oppo...
Read more

As financial insecurity rises in urban India, so does investment in insurance

Image
Scroll.in March 13, 2020 Urban Indians are becoming less confident about their financial security. Up to 58% of them fret over financial independence post retirement, which is a 4% increase from last year. An equal share of urban Indians worry about meeting their daily medical expenses and sustaining their current lifestyle once they stop working. The findings are part of a survey published by Delhi-based Max Life Insurance in association with London-based consultancy Kantar. The firms surveyed 7,014 respondents in 25 cities, including six metros, nine tier-1 cities, and 10 tier-2 cities, between December 2019 and January 2020. Source: Max Life Insurance via Quartz The trends Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz Source: Max Life Insurance via Quartz A significant share of urban Indians also say their families will have no financial support in the event of the breadwinner’s death. In such a scenario, around 57% believe the family sav...
Read more

ED tracks Swiss Bank A/Cs of Agusta scamster

The Poineer February 10,2019 Rakesh K Singh The Enforcement Directorate (ED) has tracked a dozen Swiss bank accounts in the name of Rajiv Saxena, who is key accused in the Rs 3,600 crore AgustaWestland VVIP chopper scam. The ED has also found out accounts held by  his family members and associates where the kickbacks in the now scrapped deal were allegedly parked. Two bank accounts are in the name of Rajiv Saxena’s  associates Pankaj Jain and Sumita Jain who are also the authorised signatories. The  third is in the name of another associate Ajit Singh Bubber, but Rajiv and his family members are authorised signatories. The remaining nine accounts are largely owned and operated by Rajiv, his family members and associates. Rajiv Saxena was deported by the UAE authorities on January 30 and the ED formally arrested him the next day and a court later granted his remand to the agency. He is currently undergoing custodial interrogation by the ED. The agency had in 2017...
Read more