TCS scales record high as software stocks advance
DATE: 12/09/2012
Key benchmark indices extended gains to scale fresh 3-week highs in early afternoon trade. Optimism the government will unveil a series of fiscal policy decisions later this week and firmness in Asian stocks on hopes of further stimulus measures from the world's top central banks boosted sentiment. The BSE Sensex was up 102.86 points or 0.58%, up 51.77 points from the day's low and off 0.68 points from the day's high. Index heavyweight Reliance Industries (RIL) was marginally lower. Another index heavyweight and cigarette maker ITC was positive. The market breadth was positive.
Software pivotals were in demand ahead of the two-day FOMC meeting which begins today and Germany's constitutional court's decision on European Stability Mechanism (ESM). Software major TCS scaled a record high. Truck major Tata Motors surged after the company announced its entry into Indonesia. Pharma major Sun Pharmaceutical Industries struck a record high.
At 12:29 IST, the BSE Sensex was up 102.86 points or 0.58% to 17,955.81. The index gained 103.54 points at the day's high of 17,956.49 in early afternoon trade, its highest level since 23 August 2012. The index rose 51.09 points at the day's low of 17,904.04 in morning trade.
The S&P CNX Nifty was up 27.30 points or 0.51% to 5,417.30. The index hit a high of 5,417.85, its highest level since 23 August 2012. The Nifty hit a low of 5,401.70 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,493 shares rose and 1,124 shares fell. A total of 118 shares were unchanged.
The total turnover on BSE amounted to Rs 1287 crore by 12:25 IST on BSE compared with Rs 1022 crore by 11:25 IST
Among the 30-share Sensex pack, 19 gained while the rest declined.
Index heavyweight Reliance Industries (RIL) shed 0.08% to Rs 791. RIL has bought back 3.9 crore shares for about of Rs 2793.51 crore till 4 September 2012 under its ongoing share buyback program. RIL has set maximum buyback price of Rs 870 per share. The company has set aside Rs 10440 crore for share buyback. The buyback program opened on 1 February 2012 and closes on 19 January 2013. RIL chairman Mukesh Ambani said at the company's Annual General Meeting in June 2012 that the company's buyback program represents a highly accretive use of cash by the company and it will supplement earnings growth from operations, for higher EPS (earnings per share), in the near future.
RIL on 27 August 2012 said it has scheduled a planned maintenance turnaround of one of the diesel hydrotreater units of the DTA refinery at its Jamnagar, Gujarat complex for a period of approximately two and half weeks starting 28 August 2012. This opportunity will also be utilised to carry out other maintenance and inspection jobs during the shutdown period, RIL said in a statement. During the period the other diesel hydrotreating unit of the DTA refinery along with other units including crude processing levels are planned at normal levels, RIL said.
Index heavyweight and cigarette maker ITC rose 0.30% to Rs 267.70. The stock had scaled a record high of Rs 271.50 on 30 August 2012. ITC had reported strong Q1 June 2012 results. ITC's net profit jumped 20.21% to Rs 1602.14 crore on 15.34% growth in net sales to Rs 6652.21 crore in Q1 June 2012 over Q1 June 2011. Despite series of tax hikes, ITC's performance in cigarettes business remains robust and displays pricing power for the company.
Software pivotals were in demand ahead of the two-day FOMC meeting which begins today and Germany's constitutional court's decision on European Stability Mechanism (ESM). The US and Europe are the two key outsourcing markets for Indian IT firms.
India's largest software services exporter by revenues Tata Consultancy Services (TCS) rose 2.02% to Rs 1,419.65. The stock hit a record high of Rs 1,420 in intraday trade today, 11 September 2012. TCS has re-appointed Mr. S. Mahalingam as the Executive Director and Chief Financial Officer of the company for the period 6 September 2012 to 9 February 2013, subject to the approval of the shareholders.
India's second largest software services exporter by revenues Infosys rose 0.75%. The company after market hours on Tuesday said that it has co-developed a product that would make communication faster and efficient for call centres. This product called SpeedSolve was jointly developed with American telecom major AT&T. SpeedSolve leverages state-of-the-art technologies for messaging, multimedia, reporting and smart device integration to facilitate real-time collaboration between customer service representatives and subject matter experts. This enhanced communication platform helps resolve queries faster and more accurately by minimizing call transfers — all leading to better customer experience, higher agent productivity and increased cost savings.
India's third largest software services exporter by revenues Wipro rose 1.85%.
+POWERED BY: CAPITAL MARKET NEWS
No comments:
Post a Comment