Indian markets hold on to gains

Wed, 12 Oct 01:30 pm

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Indian stock market indices held on to their gains over the last two hours of trade led by buying across index heavyweights. Barring Auto, all the sectors are trading firm with the IT sector gaining the most.

The BSE-Sensex is up by 151 points, while the NSE-Nifty is up by 48 points. BSE Mid Cap and BSE Small Cap indices are up by 0.55% and 0.37% respectively. The rupee is trading at 49.10 to the US dollar.

IT stocks are trading strong. Infosys and Mphasis Ltd. are the biggest gainers. Infosys has reported results for the second quarter ended September 30, 2011 (2QFY11). The company's bottomline for the quarter was up 11% YoY. It reported a 17.7% YoY rise in the total income. On a consolidated basis, the total income and bottomline registered an increase of 17.6% YoY and 9.7% YoY respectively. The margins were boosted on account of an increase in outsourcing orders and a weak rupee during the quarter. As per the management, the uncertainty in the global environment will remain a cause of concern for the IT industry and suggested that the company's strategic initiatives and organizational structure will enable it to build long-term partnerships with clients and help drive their business objectives. As per the company management, the operating margins are expected to rise by 1.6% in the third quarter on account of a weak rupee. The company expects its dollar revenue growth for the year to range between 17.1%-19.1% for the fiscal year versus an earlier estimate of 18%-20%. It expects an annual growth of 24.2%-26.8% for the revenues in the third quarter. Similarly, the earnings guidance for FY12 has been revised to a rise by 21% YoY. The company's board has proposed an interim dividend of Rs 15 per equity share.

Realty stocks are trading mixed with Ansal Housing and PVP Ventures leading the pack of gainers. Madhucon Projects and Welspun Projects have been the biggest losers in the sector. As per a leading financial daily, DLF is seeking binding bids for its luxury hotel chain Aman Resorts International. The company has asked for about six final bids from a pool of 10 non-binding bids. The process is expected to be concluded in a month's time. It expects the deal to fetch in at least US$ 400 m within two weeks. Earlier, the company reported that it has received at least five non-binding bids of Rs 18 bn to Rs 21 bn for the hotel chain. The bidders included the likes of LVMH, the world's biggest luxury goods group, and private equity companies. The stock was trading in the red.