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Major Asian stock markets have opened the day on a negative note with stock markets in China and Hong Kong are trading lower by 0.7% and 0.4% respectively. Benchmark indices in Europe and US ended their previous session in green with stock markets in Germany being leading gainer (up 0.6%). The rupee is trading at 66.79 per US$.
Indian stock markets have opened the day on a flattish note. The BSE Sensex is trading higher by 41 points (up 0.2%) and the NSE Nifty is trading higher by 10 points (up 0.1%). While both, BSE Mid Cap and BSE Small Cap are trading higher by 0.2% and 0.3% respectively.
As per an article in leading financial daily, Wipro acquired a minority stake in Israel's cybersecurity company named Insights Cyber Intelligence. Reportedly, Wipro acquired this stake for US$ 1.5 million.
This is one of the many investments the company has done in the preceding two quarters. Earlier, Wipro had acquired companies such as Health Plan Services and Cellant of Germany for US$ 460 million and US$ 77 million respectively.
Insights Cyber Intelligence was founded in 2015 and offers a threat intelligence driven security
platform employing cyber intelligence, rapid mitigation and one-click remediation.
The management stated that recent acquisitions have delivered well and cross selling has been robust. 2Q will witness the end of the integration efforts of the recent acquisitions along with the impact of wage hikes.
Further, the company's artificial intelligence platform, Holmes, is gaining momentum. The scale and scope of client engagements have expanded. Pilots projects are now converting to deals. Currently there are 35 engagements employing Holmes. This can be scaled up significantly in our opinion.
To add to this, the company's automation efforts are also improving and were expanded to 50 clients in the quarter. This is another major margin driver for the company. To get insights of detailed result analysis of Wipro's 1QFY17 results, please click here (subscription required).
In another news update, Indian Meteorological Department (IMD) stated that the south-west monsoon has been normal so far. Reportedly, since the monsoon started in June, 89% of the country has received normal to excess rainfall, while 11% of India has a deficit.
The deficit area includes states like Kerala, Gujarat, Daman, Punjab and some of the north-eastern states.
Further, the sowing of rain-fed kharif crops has been completed in 95.4 million hectares, or 90% of the normal area planted during the season.
This news comes as a relief considering that the country has faced a deficit rainfall in the preceding two years. Eleven states declared a drought in the country after last year's failed rains which have also led to depleting water levels in reservoirs.
A normal monsoon will lead to higher disposable income in the hands of farmers, which in-turn will boost the rural consumption. To add to this, a normal monsoon will also help to keep the inflation at low levels. The possibility of a good monsoon would also increase the chances of the country's central bank retaining its easy money policy.
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