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Rediff.com  » Business » Markets cheer Infosys Q1 result, narrowing trade deficit
This article was first published 11 years ago

Markets cheer Infosys Q1 result, narrowing trade deficit

Last updated on: July 12, 2013 16:12 IST

Image: A stock broker.
Photographs: Reuters Aastha Agnihotri in Mumbai

Markets ended on a positive note with 50-share Nifty surging above the key resistance level of 6,000 this Friday after Infosys, the company with fifth-highest weightage on the Sensex defied analysts’ estimates and posted steady dollar revenue growth for fiscal 2014.

Sentiments improved further after country’s trade deficit narrowed in June to $12.24 billion from a 7-month high, helped by a slowdown in gold imports, which should ease pressure on the current account balance and the beleaguered rupee.

Mirroring the optimism, the 30-share Sensex ended higher 282.41 points at 19,958.47 and the 50-share Nifty rose 73.90 points at 6,009 levels.

Global risk appetite was firm on hopes that the US Federal Reserve will continue with its cheap money supply as policy makers continued to debate whether to pause bond-buying by the end of this year.

. . .

Markets cheer Infosys Q1 result, narrowing trade deficit

Image: People walk outside the Bombay Stock Exchange building.
Photographs: Vivek Prakash/Reuters

In Asia, Nikkei dropped 0.7% to 14,314, Singapore Straits Times rose 1.2% to 3,228, China’s Shanghai Composite index was up 1.8% at 2,045 while Hong Kong’s Hang Seng gained 2.2% to 21,371 today.

Indian rupee, however, played spoilsport and extended its fall to below 60 per dollar levels on Friday, weighed down by heavy demand for dollars from importers, particularly oil companies, according to dealers.

The partially convertible rupee was trading at 60.11/12 per dollar at 2:00 pm, compared with its previous close of 59.6750/6850.

Domestically, investors are eyeing for the CPI and IIP data scheduled after market hours on Friday.

. . .

Markets cheer Infosys Q1 result, narrowing trade deficit


Photographs: Reuters

Among the key sectoral indices, IT, technology, capital goods, power and healthcare gained with consumer durables, auto, realty, FMCG sectors dropped on the BSE.

The gainers included counters such as Infosys and TCS gaining 11% and 2.9% respectively, Wipro rose 4%, Reliance Industries added 2.7% while Larsen & Toubro rose 2.8% on the BSE.

The laggards were Maruti Suzuki falling 3.2%, ONGC shedding 2.6%, Mahindra & Mahindra declined 0.9%, Hindalco Industries was down 1% on the BSE.

The key notable movers included counters such as Maruti Suzuki India ended lower by 3.6% at Rs 1,452.70, extending its previous day’s 2.4% fall, on concerns of weakness in passenger vehicle demand.

. . .

 

Markets cheer Infosys Q1 result, narrowing trade deficit


Photographs: Reuters

Infosys rallied nearly 11% on NSE, after the company has reported better-than-expected consolidated net profit at Rs 2,374 crore (Rs 23.74 billion) for the first quarter ended June 2013. 

Analyst on an average had expected profit of Rs 2,296 crore from the IT major.

Sintex Industries dipped 4% to Rs 40.20 after the company reported 10% year-on-year drop in consolidated operating profit at Rs 161 crore for the quarter ended June 2013 due to higher depreciation and interest cost.

The company had an operating profit of Rs 178 crore in a year ago quarter.

The broader markets ended mixed with mid-caps inching up by 0.02 per cent while small-caps shed 0.2 per cent on the BSE.

The market breadth was negative.

Out of 2,447 stocks traded so far, 1,231 stocks declined while 1,083 stocks advanced on the BSE.

Source: source