Markets remain positive, IT spurts

BSE IT index up nearly 2%

Benchmark Indices are trading higher led by buying demand among IT, Oil & Gas and Auto shares.

By 1300, Sensex gained by 74 points at 19,894, and the Nifty down 19 points at 6,021 levels.

On the global front, Asia bourses have slipped into red, with Japanese stocks giving up early gains to join other benchmark gauges in negative territory. Nikkei shed 1% at 10,491. Shanghai Composite was down 1% at 2284 as was Taiwan Weighted.

Back home, the Indian rupee recovered by three paise to quote 54.66 against the American currency in late morning trade today on renewed selling of dollars by banks and exporters amid sustained foreign capital inflows.

On the sectoral front, BSE IT index is the top gainer among the sectoral pack on the back of strong numbers posted by HCL Technologies. The index is up 1.5% at 6,488. Oil & gas, realty, auto and PSU indices are also in green. On the other hand, BSE metal and capital goods indices are down 1%.

HCL Technologies today announced that Vineet Nayar, CEO and Vice Chairman of the company will move away from his executive role by July 2013. The shares of HCL Tech is up 4.2% at Rs 703.

Wipro is up 3% at Rs 432 ahead of its earnings for the third quarter ended December 2012 (Q3) which will be announced tomorrow (January 18, 2013). India’s third-largest outsourcing company, on Tuesday said that its board will also consider the proposal for declaration of interim dividend for the financial year 2012-13.

Tata Motors has jumped 2.3% at Rs 327 even as the company said that its global sales in December 2012 declined by 13.88% to 98,968 units against 114,920 units sold during the corresponding month in 2011. ONGC, TCS, Maruti and Infosys are some of the other gainers.

Among others shares, TTK Prestige is trading lower by 4% to Rs 3,613 after reporting almost 200 bps decline in operating margins for the third quarter ended December 2012 (Q3) due to product mix and seasonal promotions.

The market breadth in BSE remains weak with 1,407 shares declining and 1,187 shares advancing.