Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


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

Markets up on IT stocks
Thu, 16 Dec 11:30 am

Indian indices are trading in the green on subdued buying interest in heavy weights during the last two hours of trade. Stocks from the IT and realty space are trading firm while stocks from the auto and consumer durable space are trading weak.

The BSE-Sensex is up 32 points while NSE-Nifty is trading flat. BSE-Midcap is trading up by 0.3%, while BSE-Smallcap index is trading 0.4% above yesterday's closing. The rupee is trading at 45.42 to the US dollar.

Hotel stocks are trading mixed with Country Club and Oriental Hotels trading firm, while Hotel Leelaventure and EIH Ltd are trading weak. As per a leading financial daily, market for hotel rooms in India may expand by around 60% in the next 3 years. Due to the slowdown in FY09 several hotel projects did not materialize. Since then demand for hotel rooms has increased on the back of increase in business and holiday travelers.

However, as per a report by Knight Frank India Pvt. Ltd (KFIPL), a property advisory, India's hotel room market is estimated to grow from Rs 7.4 bn to Rs 11.9 bn by 2013 on the back of fresh supplies. As per the report, the company expects a supply demand mismatch in the next 2-3 years with demand growing by 10% and supply growing by 15%. This would create downward pressure on occupancy levels in locations such as Bangalore and NCR. KFIPL expects incremental demand to come from Delhi - NCR and Mumbai regions. As estimated, per-day demand for upscale rooms in NCR is expected to go up to 8,156 rooms in 2013 from 6,322 rooms now. In Mumbai, this demand is expected to increase to 7,597 rooms from 5,140 rooms. This would be largely due to an improving global economy and the influx of more foreign travelers into the city.

Companies have started paying advance taxes for the October-December quarter with nearly all companies reporting a steep increase over the same period last year. Reliance paid Rs 11 bn against Rs 8.3 bn for the same period last year. LIC and Tata Steel have paid Rs 10.7 bn and Rs 10 bn respectively, as against Rs 9.8 bn and Rs 6.5 bn last year.

The entire banking sector has made robust advance tax payments. ICICI paid Rs 4.5 bn against Rs 3 bn last year while SBI paid Rs 18.5 bn against Rs 17.95 during the December quarter in FY10. HDFC Bank paid Rs 7.5 bn compared to Rs 4 bn during the same quarter last year.

In the FMCG sector, HUL paid Rs 2.2 bn in advance taxes which was 25.7 higher than what it paid during the December quarter last year. Marico paid Rs 210 m up 16.6% YoY. Among automobile majors M&M paid Rs 2.4 bn in the third quarter compared to Rs 1.9 bn in the corresponding quarter last year. Tata Motors more than doubled its tax payment this quarter compared to the December quarter in FY10. Bajaj Auto paid Rs 3.7 bn which was up 19% YoY. However, Tata Power paid Rs 580 m which was lower by 28% YoY.

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

Equitymaster requests your view! Post a comment on "Markets up on IT stocks". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Feb 23, 2018 (Close)