Indian equity markets started the day on a positive note and never looked back. Domestic market sentiment was buoyed on speculations that Federal Reserve could maintain monetary stimulus to the US economy next year on fears of the 16-day partial US government shutdown, which ended this week, curbing the country's economic growth. It was also boosted by the data coming out of China. China's economic growth rebounded to 7.8% YoY in the third quarter of this year, after slowing to 7.5% in the second quarter. Banking, Metal and Capital goods sectors were the leading pack of gainers. While the BSE-Sensex closed higher by 467 points, the NSE-Nifty closed higher by 143 points. BSE Mid Cap and the BSE Mid Cap closed on a positive note.
As regards global markets, Asian indices closed in the green. European indices have also opened in the green. The rupee was trading at Rs 61.2 to the dollar at the time of writing.
NIIT Ltd has declared its results for the second quarter of the financial year 2013-2014 (2QFY14). The company saw a decline of 5.9% YoY in revenues during the quarter. However after adjusting for the pass through revenues that were seen during the same period last year, the decline was relatively softer at 1.1% YoY. Operating margins remained flat at 9% while operating profits declined by 6.9% YoY on an absolute basis. Lower depreciation charges helped offset the decline at the operating level. As a result net profits increased by 3.4% YoY. The company's individual learning solutions segment as well as the school learning solutions segment continued to deliver subdued performance. Revenues from these segments declined by 15% YoY and 11% YoY respectively. However the corporate learning solution segment saved the day and delivered a robust growth of 32% YoY during the quarter.
According to a leading financial daily, the Reserve Bank of India (RBI) has said that it has no plans to withdraw the special dollar swap window opened for oil companies. The three state-run oil marketing companies together need nearly US $400 m every day or US $8-9 bn every month to pay for their crude imports. The oil marketing companies are the biggest buyers of dollars to meet their crude oil imports. The RBI had introduced this special swap window which takes away the oil marketers' demand off the market.