LIVE market updates: The benchmark indices yet again opened with a positive gap on the back of supportive overseas cues and better-than-expected Q2 performance by leading IT firms.
The BSE Sensex opened with a positive gap of 352 points at 61,089, and was quoted at 61,090 at 09:25 AM. The NSE Nifty was up 105 points at 18,267.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, strong results from Infy, Wipro and Mindtree indicate that the market disappointing results from TCS was a one off. Even though high attrition is a challenge for the sector, strong deal wins and robust demand are clear positives. IT is likely to resume its leadership position since the prospects for the sector look bright for the next many years on the back of accelerating digitization by businesses globally. Strong performance of HDFC Bank indicates good Q2 results and the banking major joining the bull rally. Globally, inflation continues to be a worry and continuing disruption in global supply chains is an area of concern.
The FOMC minutes indicate that tapering is on course, possibly starting November and ending by mid-2022. Since this is a known event markets are likely to discount it before the actual announcement.
Since there are no known triggers for a sharp correction in the short run and the market momentum continues to be strong, the exuberant retail investors are likely to drive the markets further up even though seasoned investors are worried about the excessive valuations, Dr. V K Vijaykumar added.
Infosys raised its QFY22 guidance to 16.5-17.5 per cent, from the earlier 14-16 per cent, after reporting a net profit of Rs 5,428 crore, up 11.7 per cent on YoY basis. The stock was up 3.5 per cent at Rs 1,768.
Wipro reported 18.8 per cent YoY jump in Q2 net at Rs 2,930.70 crore. The stock soared nearly 7 per cent to Rs 719. MindTree Q2 net profit soared 57 per cent YoY to Rs 398.90 crore. The stock has zoomed 7.5 per cent to Rs 4,686. The BSE IT index has surged 2.4 per cent to 35,616.
Larsen & Toubro, ITC and Tech Mahindra are the prominent gainers in Sensex 30.
(Updated at 09:04 AM)
LIVE market updates:
The BSE Sensex scaled to 61,600-odd levels in pre-open trades, and then was quoted 243 points higher at 60,979. The NSE Nifty 50 was up 107 points at 18,269.
Nestle India, Tata Steel, ONGC and PowerGrid Corporation were the top gainers in pre-open trades.
(Updated at 08:10 AM)
LIVE market updates: The benchmark BSE Sensex could claim 61,000-mark while the Nifty may vault past 18,200 levels on the bourses on Thursday, buoyed by robust guidance by IT majors Infosys and Wipro.
Besides, firm global cues, steady oil prices, and receding Covid-19 cases back home will support sentiment. That said, some volatility on account of weekly F&O expiry and WPI-inflation data cannot be ruled out.
A total of 21 companies, including HCL Technologies, Cyient, and Den Networks are scheduled to announce their results today.
Analysts expect double-digit revenue growth for HCL Tech between 12 to 13 per cent for Q2FY22 on a Year-on-Year basis. The strong recovery, they say, will be led by the ramp-up of large deals won in the earlier quarters.
The S&P 500 gained 0.30 per cent, the Nasdaq Composite added 0.73 per cent and Dow Jones ended flat.
In Asia, Japan’s Topix index climbed 0.3 per cent, South Korea’s Kospi added 1.3 per cent and China’s Shanghai Composite Index was steady. S&P futures were up 0.3 per cent.
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