Key benchmark indices ended the volatile trading session with minor gains. The barometer index, the S&P BSE Sensex, rose 30.49 points or 0.11% to 27,673.60, as per the provisional closing data. The Nifty 50 index rose 10.05 points or 0.12% to 8,583.40, as per the provisional closing data. The market breadth indicating the overall health of the market was strong. On BSE, 1,646 shares rose and 999 shares fell. A total of 197 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.81%. The BSE Small-Cap index provisionally rose 0.83%. Both these indices outperformed the Sensex. The total turnover on BSE amounted to Rs 3408.47 crore, lower than turnover of Rs 3945.28 crore registered during the previous trading session.
In overseas stock markets, European stocks were higher after stronger-than-anticipated inflation data from China helped to calm nerves over global growth prospects. UK construction output slipped 1.5% in August 2016 over July 2016. UK construction output rose 0.2% in August 2016 over August 2015. Asia stocks were trading higher, reversing some early losses, as investors weighed price increases in China and the possibility of a US interest rate hike later in the year. Meanwhile, China's producer price index edged up 0.1% in September from a year earlier, reversing a 0.8% on-year drop in August, the National Bureau of Statistics said. US stocks finished in the red yesterday, 13 October 2016, as investors grew jittery following the Federal Reserve's latest meeting minutes as well as weak Chinese economic reports. The number of Americans filing for unemployment benefits held at a 43-year low last week, pointing to sustained labor market strength that could pave the way for the Federal Reserve to raise interest rates in December. Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 246,000 for the week ended 8 October 2016, the lowest reading since November 1973, the Labor Department said.
Back home, Infosys fell 2.54% to Rs 1,025.35 after the company trimmed revenue growth guidance for the current financial year at the time of announcing Q2 September 2016 results today, 14 October 2016.
In constant currency terms, the company now expects revenue to grow by 8% to 9% for the year ending 31 March 2017 (FY 2017). The company had forecast 10.5%-12% growth in revenue for FY 2017 in constant currency terms at the time of announcing Q1 June 2016 results on 15 July 2016. The company had at the beginning of FY 2017 estimated its revenue growth at 11.5-13.5%.
Infosys' consolidated net profit rose 4.9% to Rs 3606 crore on 3.1% growth in revenue to Rs 17310 crore in Q2 September 2016 over Q1 June 2016. The results are as per International Financial Reporting Standards (IFRS). The result was announced during market hours today, 14 October 2016.
Infosys' CEO Dr. Vishal Sikka said that the company focused on strong execution in Q2 September 2016 with its core IT services business showing good progress on the strength of its innovation and operational initiatives. While the company continues to navigate an uncertain external environment, it remains focused on executing its strategy and increasing momentum of its software plus services model, Sikka said.
M.D. Ranganath, CFO of Infosys said the company's margins expanded during the quarter on the back of further improvement in operational efficiency. Operating cash flows for the quarter were healthy and the company effectively navigated a volatile currency environment through prudent hedging, he said.
Hindustan Unilever (HUL) dropped 2.31% to Rs 842, with the stock extending previous session's losses triggered by the company's parent, Unilever Plc reporting a disappointing revenue growth in Q3. Shares of HUL had settled 1.61% lower at Rs 861.95 yesterday, 13 October 2016 after Unilever yesterday, 13 October 2016 posted an underlying sales growth of 3.2% in Q3 September 2016 over Q3 September 2015. Volumes declined 0.4% during this period. Sales increased by 3.4% at constant exchange rates while turnover, which is at current rates, declined 0.1% in Q3 September 2016 over Q3 September 2015. Consumer demand remained weak and in the markets in which Unilever operates volumes have slowed further and are flat in aggregate, the company said. This is particularly the case in Latin America where currency devaluation has pushed up the cost of living of its consumers, squeezing disposable incomes, it added. Unilever holds 58.32% stake in Hindustan Unilever (HUL) as per the shareholding pattern as on 30 September 2016.
Engineering and construction major Larsen & Toubro (L&T) was up 2.44% to Rs 1,471.45after the company said its construction division has secured a major order worth Rs 3799 crore from the Dedicated Freight Corridor Corporation of India. The latest order has been secured by a consortium of L&T and Sojitz Corp, Japan. The announcement was made during market hours today, 14 October 2016.
Tata Motors was up 2.06% to Rs 555.50 on reports that a foreign brokerage has retained its overweight rating on the stock and revised target price on the stock to Rs 642 from Rs 585 earlier. The brokerage reportedly said that Jaguar Land Lover (JLR) numbers are expected to be driven by high average selling price. Volume growth will moderate buy scale will gain, it said. JLR is likely to post 22% earnings per share (EPS) compound annual growth rate (CAGR) between FY 2016-2018, it added.
On the economic front, the all-India general CPI inflation dipped to 13-months low of 4.31% in September 2016, compared with 5.05% in August 2016. The core CPI inflation moved up to 4.77% in September 2016 from 4.59% in August 2016. The data was announced after market hours yesterday, 13 October 2016.
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