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Market have opened higher on Friday after encouraging first quarter earnings from software major Infosys.
Infosys has rallied nearly 15% to Rs 2,899, in opening deals on NSE, after the company has reported a better-than-expected consolidated net profit at Rs 2,374 crore for the first quarter ended June 2013 (Q1).
Total revenues grew 7.8% quarter-on-quarter to Rs 11,267 crore in June quarter against Rs 10,454 crore in previous quarter, Infosys said in a statement. The company has retained its 6-10% US Dollar revenue growth guidance for FY2014.
By 9:35, the Sensex was higher by 169 points at 19,845 mark and the Nifty gained 31 points at 5,966 levels.
In the international markets, the rally in Asian stocks showed signs of running out of puff on Friday, even after a record closing high on Wall Street, while the selloff in the dollar paused as market attention turned to major Chinese data due on Monday.
Markets are braced for fresh evidence of weakness in the world's second biggest economy that, if confirmed, will no doubt dampen risk appetite. Economists polled by Reuters see second-quarter GDP growth at a median 7.5%.
MSCI's broadest index of Asia-Pacific shares outside Japan edged up a tepid 0.1%, but was on track to end the week up 3.1%, its best gain since September.
Back home, BSE IT and TECk indices have zoomed between 4-6%. However, BSE Consumer Durable, Power and FMCG indices are down by nearly 1%.
Infosys is the top Sensex gainer post the announcement of good set of numbers.
According to Sandip Saharwal, CEO, PMS, Prabhudas Lilladher, "It's a good start for earnings season. Infosys has beaten our lowered expectations. Guidance has been maintained and I think rupee guidance would be beaten as well. One shouldn't be too euphoric though for the stock as there are a lot of management and structural changes that need to happen."
Adds Phani Sekha, fund manager, Angel Broking, “Generally you can conclude that the worst is over for them but it remains to be seen how quickly they can recover from here. We need to watch whether the management sees any air pockets going forward. You can ascribe it to Murthy magic. If they have deviated from their Infosys 3.0 strategy to focus on more mundane work at a lower price to bump up volume that would be a good strategy and you can expect that kind of pragmatism from Murthy."
Other notable gainers are Wipro, TCS, Sun Pharma, Tata Motors and HDFC Bank.
On the losing side, Maruti Suzuki, Cipla, Hero Moto, Tata Power and Hindalco have declined between 1-2%.
Cipla has declined by almost 2%. Cipla have come under the scanner of the regulator for failing safety and efficacy tests. Samples of Cipla’s Ibugesic 200 and 400 picked up by drug inspectors last month were found to be of substandard quality and the regulator is likely to take action against the firm, a senior official in the office of Drug Controller General of India (DCGI) said.
The markets breadth in BSE remains marginally positive with 496 shares advancing and 400 shares declining.
