IT stocks decline

A bout of volatility was witnessed as key benchmark indices regained positive terrain after hovering in negative terrain in morning trade. The barometer index, the S&P BSE Sensex, was currently up 32.96 points or 0.13% at 25,698.23. The market breadth indicating the overall health of the market was strong. IT stocks declined after Cognizant Technology Solutions Corp at the time of announcement of Q2 results on Wednesday, 6 August 2014, forecasted slowest full-year sales growth in its 20-year history. Shares of companies whose fortunes are linked to orders from Indian Railways rose on reports the cabinet approved 100% foreign direct investment (FDI) in railway infrastructure.

At 10:20 IST, the S&P BSE Sensex was up 32.96 points or 0.13% to 25,698.23. The index rose 34.78 points at the day's high of 25,700.05 in morning trade. The index declined 71.02 points at the day's low of 25,594.25 in early trade, its lowest level since 5 August 2014.

The CNX Nifty was up 7.45 points or 0.1% to 7,679.50. The index hit a high of 7,682.75 in intraday trade. The index hit a low of 7,649.50 in intraday trade, its lowest level since 5 August 2014.

The market breadth indicating the overall health of the market was strong. On BSE, 1,213 shares rose and 646 shares fell. A total of 66 shares were unchanged.

The BSE Mid-Cap index was up 34.44 points or 0.37% at 9,235.68. The BSE Small-Cap index was up 44.07 points or 0.44% at 10,140.35. Both these indices outperformed the Sensex.

IT stocks declined after IT services provider, Cognizant Technology Solutions Corp at the time of announcement of Q2 results on Wednesday, 6 August 2014, forecasted slowest full-year sales growth in its 20-year history. TCS (down 1.45%), Infosys (down 0.24%), Wipro (down 1.29%), Tech Mahindra (down 1.06%) and HCL Technologies (down 0.81%) declined.

Cognizant expects third quarter 2014 revenue to be between $2.55 billion and $2.58 billion. Third quarter 2014 non-GAAP diluted EPS is expected to be at least $0.63. Financial year ending 31 December 2014 (FY 2014) revenue is expected to be up at least 14% compared to 2013. FY 2014 non-GAAP diluted EPS is expected to be at least $2.54.

Shares of companies whose fortunes are linked to orders from Indian Railways rose on reports the cabinet approved 100% foreign direct investment (FDI) in railway infrastructure after market hours on Wednesday, 6 August 2014. Kernex Microsystems (up 4.95%), Hind Rectifiers (up 4.94%), NELCO (up 4.95%), Kalindee Rail Nirman (up 5%), Titagarh Wagons (up 4.98%), Texmaco Rail & Engineering (up 13.73%) and BEML (up 3.95%) gained. A hike in FDI in railways was announced by the Railway Minister Sadanand Gowda last month in the Railway Budget 2014-15.

The rupee edged higher against the dollar. The partially convertible rupee was hovering at 61.29, compared with its close of 61.5025 on Wednesday, 6 August 2014.

Asian stocks fell today, 7 August 2014, as tensions mounted over Ukraine. Key benchmark indices in China, Japan, Indonesia, Taiwan, Hong Kong, Singapore, and South Korea were off 0.09% to 0.59%.

Trading in US index futures indicated that the Dow could gain 8 points at the opening bell on Thursday, 7 August 2014. US stocks edged higher on Wednesday, 6 August 2014, on gains in consumer-staples shares.

The US has on Wednesday, 6 August 2014, joined NATO and Poland in warning there's a risk Russia could send troops into Ukraine.

Russia will reportedly ban billions of dollars of food imports from the US and other nations in retaliation for sanctions imposed over the turmoil in Ukraine. Russian President Vladimir Putin yesterday ordered restrictions on imports for one year from countries that have imposed or supported sanctions against Russia

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