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Nifty scales 12,000 mark; breadth positive

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Barometers advanced further and scaled a fresh intraday high in mid afternoon trade. The Nifty crossed the crucial 12,000-mark. At 14:26 IST, the barometer index, the S&P BSE Sensex, was up 326.89 points or 0.81% at 40,575.12. The Sensex hit an all-time high of 40,606.91 in mid-afternoon trade.

The Nifty 50 index was up 85.55 points or 0.72% at 12,002.75. The Nifty is still 100.30 points, or 0.84% away from its all time high of 12,103.05 hit on 3 June 2019.

In the broader market, the S&P BSE Mid-Cap index was up 0.39%. The S&P BSE Small-Cap index was down 0.08%.

The market breadth was positive. On the NSE, 920 shares rose and 833 shares fell. A total of 389 shares were unchanged. In Nifty 50 index, 34 stocks advanced while 16 stocks declined.

Buzzing sector

IT stocks were buzzing as rupee edged lower. The Nifty IT index was up 0.6% at 15,626.55, reversing yesterday's fall.

NIIT Technologies (up 0.88%), Hexaware Technologies (up 0.82%), Tata Elxsi (up 0.61%), Oracle Financial Services Software (up 0.39%), TCS (up 0.25%) were major gainers in IT segment.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 70.9275, compared with its close of 70.69 during the previous trading session.

A weak rupee boosts revenues of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

IT major Infosys was up 2.51% after the company said it strongly condemns the mischievous insinuations made by anonymous sources against the co-founders and former colleagues, suggesting their involvement in the recent whistleblower allegations.

According to Nandan Nilekani, chairman, Infosys, These speculations are appalling and seem to be aimed at tarnishing the image of some of the most accomplished and respected individuals. I have deep regard for the life-long contribution of all our cofounders. They have built this institution and have served this company selflessly and even today, remain committed to the long-term success of Infosys.

As previously stated, the audit committee has appointed an external law firm to conduct an independent investigation into the allegations made in the complaints. The firm will share the outcome of the investigation at the relevant time with all stakeholders, the company added in its statement issued during trading hours today, 6 November 2019.

Tech Mahindra rose 0.24% after the company reported 17.2% rise in consolidated profit after tax to Rs 1124 crore on a 4.8% rise in revenue to Rs 9070 crore in Q2 September 2019 over Q1 June 2019.

EBITDA rose 14.2% to Rs 1501 crore while the EBITDA margins rose by 130 bps to 16.5% in Q2 September 2019 over Q1 June 2019.

Q2 result update:

Drug major Cipla advanced 2.38% to Rs 478.75. Net profit rose by 25% to Rs 471 crore on a 10% in total revenue from operations to Rs 4,395.78 crore in Q2 September 2019 over Q2 September 2018. EBITDA jumped by 21% to Rs 909 crore in Q2 September 2019 as compared to Rs 753 crore in corresponding quarter in the last fiscal. Revenue and EBITDA growth were aided by growth across key businesses.

Canara Bank was up 1.48%. The bank's net profit rose 21.83% to Rs 364.92 crore on a 14.06% rise in total income to Rs 14,461.73 crore in Q2 September 2019 over Q2 September 2018. The bank reported an improvement in asset quality. The ratio of gross NPAs to gross advances stood at 8.68% as on 30 September 2019 as against 8.77% as on 30 June 2019 and 10.56% as on 30 September 2018.

Shares of Alkyl Amines jumped 8.37%. On consolidated basis, company net profit advanced 105.84% to Rs 54.93 crore on a 7.72% rise in revenue from operations to Rs 234.97 crore in Q2 September 2019 over Q2 September 2018.

Godrej Consumer Products was up 2.23%. Net profit rose 13.14% to Rs 334.57 crore on a 0.66% rise in revenue from operations to Rs 1,490.45 crore in Q2 September 2019 over Q2 September 2018. The board has also declared an interim dividend of Rs 2 per equity.

Numbers to watch:

The yield on 10-year benchmark federal paper fell to 6.497% at 14:120 IST compared with 6.514% in the previous trading session.

In the commodities market, Brent crude for January 2020 settlement was down 58 cents at $62.38 a barrel. The contract rose 1.34% to settle at $ 62.96 a barrel during the previous trading session.

MCX Gold futures for 5 December 2019 settlement edged 0.4% lower to Rs 38,031.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 06 2019. 14:34 IST