Shares pare gains; IT shares in demand

Key benchmarks pared gains in morning trade. At 10:25 IST, the barometer index, the S&P BSE Sensex, was up 178.40 points or 0.51% at 35,020.50. The Nifty 50 index added 61.10 points or 0.59% at 10,350.

In the broader market, the S&P BSE Mid-Cap index rose 0.54% while the S&P BSE Small-Cap index gained 0.52%.

The market breadth was strong. On the BSE, 1551 shares rose and 651 shares fell. A total of 113 shares were unchanged.

Sebi Regulation:

The board of the Securities and Exchange Board of India (Sebi) on Thursday eased pricing framework for preferential allotment of shares, making it easier for listed companies to raise money. It has decided to allow companies to consider two-week average price for pricing preferential share issue. In addition, the regulator has also streamlined settlement regulations to make procedures faster and more effective. Besides, it has decided to amend insider trading norms. It also tweaked its takeover regulations to ensure that shareholders receive interest if open offers are delayed.

Buzzing Index:

The Nifty IT index gained 3.41% to 14,902.70, outperforming other sectoral indices on the NSE. The index has added 2.8% this week while the benchmark Nifty 50 index has risen 1.5% during the same period.

MindTree (up 5.52), Infosys (up 5.22), TCS (up 4.43), Wipro (up 3.18), HCL Technologies (up 2.86), Tech Mahindra (up 2.71), Oracle Financial Services Software (up 2.47), Persistent Systems (up 1.95), MphasiS (up 1.55) and Hexaware Technologies (up 0.08) advanced.

Q4 Results Today:

ITC (up 0.37%), Coal India (up 0.96%), Glenmark (up 3.12%), Nalco (up 0.59%), Sun TV (up 0.95%), APL Apollo Tubes (down 0.59%), Century Ply (up 0.98%), EIH (up 0.52%), Emami (up 1.58%), GNFC (up 1.48%), HUDCO (up 1.44%), IFCI (up 2.62%), ITI (down 0.75%), Kajaria (down 0.64%), Oil India (up 3.07%), Sheela Foam (down 1.37%), Sounth Indian Bank (up 3.01%), TVS Srichakra (up 1.06%), UCO Bank (up 3.72%), Apex Frozen (up 0.34%), Hester Bio (down 1.15), IRCTC (down 2.98%), ISGEC Heavy Engg (up 0.74%), Rupa & Company (up 0.55%) and West Coast Paper (up 3.35%) are some of the companies that will announce their quarterly earnings today.

Earnings impact:

Fertilizers & Chemicals Travancore (FACT) rose 3.08% to Rs 53.50 after the company reported consolidated net profit of Rs 66.53 crore in Q4 March 2020 compared with net loss of Rs 50.03 crore in Q4 March 2019. Consolidated revenue from operations surged 46.04% to Rs 708.48 crore in the fourth quarter from Rs 485.12 crore recorded in the same period last year.

Following the announcement, the stock surged 14.44% to Rs 51.90 on Thursday. It has risen 17.97% in two sessions.

Engineers India rose 4.50% to Rs 77.85 after the company's consolidated net profit jumped 34.6% to Rs 119.69 crore on 39.8% increase in net sales to Rs 864.38 crore in Q4 FY20 over Q4 FY19. Revenue of the consultancy & engineering projects segment stood to Rs 412.22 crore (up 15.2% YoY) and revenue of turnkey projects segment stood at Rs 452.15 crore (up 73.7% YoY) during the quarter.

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