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IT stocks lead morning gains
Fri, 22 Oct 09:30 am

Asian markets have opened today on a mixed note. Positive GDP numbers are leading the gains in the Japanese markets. However, lower growth numbers for China are causing selling pressure in the Chinese and Hong Kong markets. Indian markets have opened in the positive. Currently, IT and telecom stocks are leading the gainers’ pack.

The BSE-Sensex is trading higher by around 35 points (0.2%), while the NSE-Nifty is up about 5 points (0.1%). Mid and small cap stocks are also following suit with the BSE-Midcap and BSE-Smallcap indices trading higher by around 0.4% and 0.6% respectively. The rupee is trading at 44.50 to the US dollar.

FMCG stocks are currently trading mixed. While Nestle and Dabur are leading the list of gainers, Pidilite and ITC are witnessing selling pressure. Pidilite announced its second quarter results yesterday. While its net sales grew by 15% YoY during the quarter, net profits declined by 3% YoY. The decline was mainly due to the impact of higher raw material costs as well as higher tax rates during the quarter. The decline in net income would have been worse had it not been for the savings in staff costs as well as depreciation during the quarter. However, its half year results were more positive with sales growing by 19% YoY and net income rising by 11% YoY.

IT stocks have started the day on a mixed note. TCS and Infosys are the major gainers while Wipro is lagging behind. IT major TCS has delivered yet another quarter of stellar performance. The company, in its filing late yesterday, reported a 13% QoQ increase in sales and a 14% QoQ growth in net profits. The performance was driven by an 11% growth in volumes. The company is seeing good traction in terms of orders from its clients. It even expects pricing to trend upwards in the coming quarters. However, high attrition rates continue to worry the management. Buoyed by the stellar performance, the stock is currently trading in the green. Anyways, Wipro has announced its numbers a short while ago. While sales have come in higher by 8% QoQ for 2QFY11, net profits are down 3% QoQ.

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