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Barring Japan, major Asian stock markets have opened the day on a negative note. Stock markets in Indonesia and Hong Kong are trading lower by 0.4% and 0.7% respectively. Benchmark indices in Europe and US ended their previous session in green with stock markets in Germany ending the day higher by 0.9%. The rupee is trading at 67.05 per US$.
Indian stock markets have opened the day on a flattish note. The BSE Sensex is trading marginally higher by 55 points (up 0.2%) and the NSE Nifty is trading higher by 20 points (up 0.2%). BSE Mid Cap and BSE Small Cap too are trading higher by 0.3% and 0.2% respectively.
As per an article in Livemint, Infosys is expected to earn incremental revenues of Rs 4 billion spread over the third and fourth quarter as part of implementation of the Goods Service and Tax Network (GSTN).
Infosys had been awarded a contract from the government to implement the GST network last September. However, with hurdles over the passage of the bill, the contract work had halted. The work on the same seems to have resumed since the government has asked Infosys to start work on the hardware part a day after the Rajya Sabha passed the constitutional amendment bill for GST on 3 August.
The contract involves installation of hardware devices and once that's done software will be installed in it. In totality the contract value is pegged at Rs 13.8 billion. The balance amount will be recognized as revenues over five years of the contract period.
Recently, the company had revised its revenue guidance in terms of dollar revenue growth downwards by 1.5% to 12.3%. Incremental revenues from this contract could possibly help the company to achieve this target or even exceed it. The stock is trading up by 1.3%.
In the six months ended June, the company's domestic sales have grown at 7.3% in volume terms and 2.6% in value terms. Largely the volume growth has been led by a recovery in the sales of Maggi Noodles. Reportedly, Maggi has regained its leadership position by capturing 57% of the market in June this year from the very lows of 10.9% post the ban.
However, what is worrying is that excluding the noodle brand other categories have posted a volume growth of mere 0.5% in volume terms. And maggi noodles have posted a better volume growth on account of a lower base due on account of ban last year.
Going forward, the volume growth from categories other than Maggi will be the key things to watch out for as the company increases its efforts to reduce its dependence on the noodle brand. The stock is trading up by 0.4%.
Long term investing is fine but make no mistake, even the best of companies need a favorable economic environment to work their magic.
Which is why it is very important for government to do its job in terms of moderating inflation, push through reforms and provide sufficient job opportunities
However, is the Indian Government up to it? Well, we have an important announcement to make in this regard.
Vivek Kaul, who you all know as the editor of The Vivek Kaul Dairy, has spotted a trend which he thinks has the potential to derail India's long-term growth story.
And in the process, impact YOU. Significantly.
Now, Vivek has been working on these developments, along with Bill Bonner, for some time now...and he is finally ready to share them with you.
In fact, as you read this, Vivek has just come out with a full note that details all...including how this trend could impact you.
Click here to know more.
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