Firmness continued on the bourses in mid-morning trade as key benchmark indices traded with modest gains. At 11:15 IST, the barometer index, the S&P BSE Sensex rose 276.48 points or 0.85% at 32,658.94. The Nifty 50 index advanced 85.95 points or 0.86% at 10,106.60. Both the Sensex, and the Nifty, hit fresh record high in mid-morning trade.
The market sentiment was positive amid a slew of domestic corporate earnings and gains in global equities. Global markets took note of dovish stance of US Federal Reserve which had kept its benchmark interest rate unchanged after the conclusion of a two-day policy meeting yesterday, 26 July 2017. Higher interest rates in the US is perceived as negative for emerging markets, including India, as it will drain liquidity from these markets and redirect it to developed economies.
The S&P BSE Mid-Cap index rose 0.64%. The S&P BSE Small-Cap index advanced 0.32%. Both these indices underperformed the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,222 shares rose and 1,068 shares declined. A total of 141 shares were unchanged.
IT stocks advanced. Persistent Systems (up 0.93%), Wipro (up 0.59%), TCS (up 0.56%), Infosys (up 0.52%) and Oracle Financial Services Software (up 0.03%) edged higher. Tech Mahindra (down 1.16%) edged lower.
HCL Technologies rose 2.6% to Rs 914.65. The company's consolidated net profit fell 6.6% to Rs 2171 crore on 0.8% growth in revenue to Rs 12149 crore in Q1 June 2017 over Q4 March 2017. The result was announced before market hours today, 27 July 2017.
C. Vijayakumar, President & CEO, HCL Technologies, said that the company continues to propel forward on its Mode 1-2-3 growth strategy, delivering a revenue growth of 2.6% QoQ and 12.2% YoY in constant currency terms in Q1 June 2017. This quarter, it also expanded its EBIT margins from 20% to 20.1%, through continued superior execution in its core business, integration and assimilation of the acquired entities, as well as its IP investments.
HCL Technologies expects FY 2018 revenue to grow between 10.5% and 12.5% in constant currency terms. Operating margin (EBIT) in FY 2018 is expected in the range of 19.5% to 20.5%.
The company's board declared interim dividend of Rs 2 per share for the year ending March 2018.
Realty stocks gained. Indiabulls Real Estate (up 6.34%), D B Realty (up 2.92%), Oberoi Realty (up 1.13%), Prestige Estates Projects (up 0.87%), HDIL (up 0.64%), DLF (up 0.56%), Godrej Properties (up 0.42%) and Sobha (up 0.03%) edged higher. Unitech (down 2.89%) declined.
VA Tech Wabag rose 2.16% at Rs 609.25 after the company said it has secured order worth Rs 386 crore in Bengaluru. The announcement was made after market hours yesterday, 26 July 2017.
In a key political development, Nitish Kumar formed new government in Bihar with the Bharatiya Janata Party (BJP). He took oath as Chief Minister of Bihar at 10:00 IST today, 27 July 2017. With oath today, Nitish Kumar ended his party, JDU's mahagathbandhan or Grand Alliance with Lalu Yadav's RJD and the Congress last evening and joined hands with his former partner BJP.
Overseas, Asian stocks were trading higher following the Federal Reserve's decision to leave interest rates unchanged and as a slew of corporate earnings began coming through.
US equities closed higher yesterday, 26 July 2017, on the back of strong earnings and following the Federal Reserve's decision to keep interest rates unchanged.
US Federal Reserve kept its benchmark interest rate unchanged after the conclusion of a two-day policy meeting yesterday, 26 July 2017. The Fed gave no clear signal about the chances for another increase this year or about any concerns about low inflation. But the central bank did confirm that it plans to begin to reduce its massive bond holdings relatively soon. The Fed had raised the target range for its federal funds rate by 25 basis points to 1% to 1.25% during its June 2017 meeting.
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