Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

IT stocks contribute to a firm close
Tue, 18 Jan Closing

Markets had a field day today, showing a strong performance. They were trading on a firm note on the back of a good quarterly performance by IT biggie TCS. The rest of the IT pack was also pulled upwards on the back of its strong results. While the BSE-Sensex closed higher by around 210 points (up 1.1%), the Nse-Nifty closed higher by 69 points (1.2%). This was a big change from the either flat or negative sessions witnessed in the past few trading days. The BSE Midcap and the BSE Small cap could not replicate the large caps' strong performance and were trading higher by 0.5% and 0.3% respectively. IT and metal stocks found strong investor favour. But oil and gas and power stocks did not evince much interest.

India was one of the strongest performers among Asia's major markets. European indices have all opened in the green. The rupee was trading at Rs 45.44 to the dollar at the time of writing.

The government may just fall short of its Rs 400 bn divestment target on the back of some hanky-panky by big name merchant bankers. SAIL recently called off its investor road-shows for its Rs 65 bn follow on public offer (FPO). Bankers like SBI Capital Markets, HSBC, Deutsche Bank and Kotak Mahindra Capital may be stripped of their mandate for the FPO. These banks were also involved in the Rs 35 bn follow-on offer of Tata Steel, the biggest rival of SAIL. This is a huge conflict of interest for the investment banks involved.

Of the six hired for the SAIL issue only JP Morgan and Enam Securities were not involved in the rival Tata Steel issue. The state-run steel major has already sent 'showcause' notices to these banks. They will need to explain why they took up an FPO of a competing steel company when the first mandate was alive, during a similar period. Anyway, with the Sensex being extremely volatile in the past few months, further IPOs and FPOs may be deferred till the market uncertainty reduces to an extent.

The Banking Index closed positive today with Axis Bank being one of the top performing stocks on the back of its impressive 3QFY11 results declared yesterday. The company reported a whopping 37% growth in net interest income on a 46% advance growth. Even in a period of tight liquidity the company managed to put out very impressive credit growth. The growth in the loan book was nearly 2 times the average sector growth. Profits grew by 35% in 9mFY11 due to the above reasons. Its net interest margins (NIMs) however fell slightly to 3.8% from 4% previously on higher cost of funds. The bank continued to stamp its all India presence through 1,120 branches and 5,303 ATMs across 734 cities. During 9mFY11, the bank added 137 branches and 91 ATMs. Net NPAs (non performing assets), as a percentage of advances, saw a marginal improvement in the quarter and stood at 0.3%. However, the management cited concerns over possible delinquencies in the restructured assets.

Medical equipment manufacturer and distributor Opto Circuits displayed a spectacular performance in 3QFY11 (Oct-Dec 2010). Its consolidated revenues grew by 63% YoY during the quarter. Operating profits increased 39% YoY during the period. On the flip side, however, margins declined by 4.9% due to increase in overall expenditure as a percentage of sales. Bottomline increased 46% YoY in 3QFY11 due to increase in other income, compared to a loss in the corresponding period last year. This was offset by higher depreciation and tax expenses. The stock closed up over 10% today.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "IT stocks contribute to a firm close". Click here!


Stock Market Updates

Sensex Trades Marginally Lower, Dow Futures Up by 174 Points (Today's Market)

May 14, 2021 12:30 pm

BSE Sensex is trading down by 29 points, while the NSE Nifty is trading down by 39 points.

Sensex Opens Flat; Asian Paints Rallies 7% Post Q4 Results (Today's Market)

May 14, 2021 09:30 am

Indian share markets open flat. The BSE Sensex opened down by 33 points, while the Nifty is trading lower by 14 points.

ADANI TOTAL GAS Share Price Down by 5%; BSE 500 Index Down 0.1% (Today's Market)

May 14, 2021 09:34 AM

ADANI TOTAL GAS share price is trading down by 5% and its current market price is Rs 1,330. The BSE 500 is down by 0.1%. The top gainers in the BSE 500 Index are ASIAN PAINTS (up 6.7%) and BANK OF INDIA (up 5.7%). The top losers are ADANI TOTAL GAS (down 5.2%) and VINATI ORGANICS (down 7.1%).

JINDAL STEEL & POWER Share Price Down by 5%; BSE METAL Index Down 2.4% (Today's Market)

May 14, 2021 09:32 AM

JINDAL STEEL & POWER share price is trading down by 5% and its current market price is Rs 466. The BSE METAL is down by 2.4%. The top losers are JINDAL STEEL & POWER (down 5.3%) and NMDC (down 5.3%).

BANK OF INDIA Share Price Up by 5%; BSE BANKEX Index Up 0.3% (Today's Market)

May 14, 2021 09:28 AM

BANK OF INDIA share price is trading up by 5% and its current market price is Rs 77. The BSE BANKEX is up by 0.3%. The top gainers in the BSE BANKEX Index is BANK OF INDIA (up 5.2%). The top losers is HDFC BANK (down 0.2%).

GRINDWELL NORTON Share Price Up by 8%; BSE CAPITAL GOODS Index Up 0.4% (Today's Market)

May 14, 2021 09:26 AM

GRINDWELL NORTON share price is trading up by 8% and its current market price is Rs 1,259. The BSE CAPITAL GOODS is up by 0.4%. The top gainers in the BSE CAPITAL GOODS Index is GRINDWELL NORTON (up 7.7%). The top losers are L&T (down 0.3%) and V GUARD INDUSTRIES (down 0.4%).

View More Indian Share Market News

Most Popular

Is Intraday Trading For You?(Fast Profits Daily)

May 13, 2021

Do you think you have what it takes to be an intraday trader? Find out in this video.

My Secret to Find Breakthrough Stocks(Fast Profits Daily)

May 7, 2021

I've used this trading technique for many years with great success. I'm sharing it with you today.

Are the Stock Markets Deaf to Covid Agony?(Profit Hunter)

May 6, 2021

Why are markets discounting the economic impact of Covid?

The Key to Profit from India's EV Revolution(Profit Hunter)

May 7, 2021

Stocks you must consider investing in before buying your first electric vehicle.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


May 14, 2021 (Close)