Indian share markets remain in green

Tue, 9 Jul 11:30 am

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Indian share markets have traded in green during the previous two hours of trade. While all sectoral indices have witnessed net buying interest, the most noticeable upward movements have been witnessed in the consumer durables and capital goods sectors.

The BSE-Sensex is up by 110 points and NSE-Nifty is up by 39 points. BSE Mid Cap is up by 0.6% and BSE Small Cap is up by 0.7%. The rupee is trading at 60.11 to the US dollar.

Except CMC Ltd, Oracle Financial Services and Info Edge, all Software (Large) shares are trading in green with NIIT Ltd and Mphasis Ltd leading the gains. According to a leading financial news medium, Infosys Ltd, India's second largest software exporter, has observed a strong renewed investor interest on account of stake hike by State-owned Life Insurance Corporation (LIC) in the company. LIC has acquired 4.38 million equity shares amounting to Rs 11 bn during the quarter ended June 2013.

Infosys witnessed weak earnings performance during the last quarter of the financial year gone by. The company posted a meagre 3.4% YoY growth in net profit to Rs 24 bn for the 4QFY13 and the revenue forecast of 6%-10% for the fiscal year 2013-14 stood below Nasscom's industry estimates. The major reason for the subdued performance during the quarter as well as for the year FY13 was on account of delay in deal ramp ups. Amidst the subdued market conditions, the co-founder Mr N R Narayana Murthy's return to the company provided a ray of hope. Mr Murthy's return helped in boosting employee morale through a wage-hike for them. Besides, he also announced other pro-active measures such as a focus on acquisitions and other high-end services. . Meanwhile, Infosys is scheduled to report its first quarterly earnings on July 12, 2013. Infosys Ltd's share is up by 1.1%.

Except Everest Kanto Cylinder, Voltamp Transformers and Bharat Bijlee, all Engineering shares are trading in green with Alstom T&D and Cummins India leading the gains. According to a leading financial news daily, ABB India Ltd, the power equipment manufacturing company, has bagged a contract from a Dutch firm, Fastned, which builds electric-vehicle charging stations. This will aid the company in supplying over 200 electric chargers. As per company statements, Fastned is building a network of 200 electric-vehicle charging stations along highways in Netherlands and will be equipped with several multi-standard fast chargers. The first ABB terra fast chargers are expected to be delivered in September and the construction of the stations, which will have solar canopies, is scheduled to be completed by 2015. This comes as a positive move for ABB Ltd. The company has observed mixed earnings performance for 1QCY13 with decline in profits, but good show on the topline front. Short cycle orders have aided in strong topline growth,while higher interest costs have impacted the profitability growth. The company has witnessed pressures on orders front due to absence of large size orders. While it's a long way to go for the company to clock steady-state margins, such contracts may help boost the order book and add up to the earnings performance of the company. ABB India Ltd's share is up by 0.5%.