Indian stock markets open in the green

Fri, 11 Oct 09:30 am

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The major Asian stock markets have opened the day in the green with Japan (up 1.6%) and Hong Kong (up 1.2%) leading the gains. The Indian stock markets have also opened the day on a firm note. Barring FMCG and metal, all sectoral indices are trading firm with the stocks in the realty and software spaces leading the gains.

The Sensex today is up by around 132 points (0.7%), while the NSE-Nifty is up by around 42 points (0.7%). The midcap and smallcap stocks have also opened in the green with the BSE Mid Cap index and the BSE Small Cap index up by around 0.5% and 0.4% respectively. The rupee is trading at 61.23 to the US Dollar.

Oil and gas stocks have opened the day on a firm note with Jindal Drill Ltd and Chennai Petroleum Corporation Ltd (CPCL) leading the pack of gainers. As per a leading financial daily, state owned Oil and Natural Gas Corporation Ltd (ONGC) and Reliance Industries (RIL) have independently joined hands with Petroleos de Venezuela, SA (PDVSA), to develop giant oil fields in Venezuela. ONGC’s wholly owned subsidiary ONGC Videsh Limited (OVL), that has stakes in two producing projects in Venezuela, has signed a memorandum of understanding ( MOU) with PDVSA for strategic cooperation and participation in the exploration and production of hydrocarbon resources in the oil-rich Faja area of Venezuela. On the other hand, RIL has signed a joint study agreement with PDVSA for Ayacucho Block 8 in Orinoco Oil Belt. The aim is to jointly evaluate the development plan for Ayacucho 8. RIL and PDVSA have also extended the term of the MOU signed last year by one year for continued cooperation.

Software stocks have opened the day mainly in the green with Infosys Ltd and Wipro Ltd leading the gains. Software major Infosys Ltd has announced results for the second quarter of financial year 2014. The company has reported a flattish growth of 1.4% on quarter on quarter (QoQ) basis during the quarter. The consolidated revenues in dollar terms were up by 3.76% QoQ. In rupee terms, the revenues grew by 15.1% QoQ. The operating profit for the quarter increased by 6.5% QoQ. The management has revised FY14 sales guidance to 9-10 % against the earlier guidance of 6-10 %. As per the management, the company has witnessed broad based volume growth, healthy client additions, five large deal wins and increased sales momentum of its big data and cloud offerings during the quarter. The management has further stated that the company will continue with planned investments and initiatives to explore new avenues of growth. Regarding rupee volatility, the management has said that the company has an active hedging program to minimize its impact on margins.