5 Reasons Why Sensex and Nifty Fell Over 1% Today
Closing

Indian share markets witnessed heavy selling pressure today, pausing the record rally, with all sectors barring telecom, reeling under pressure.

Benchmark indices fell tracking weak Asian markets despite announcement of US$ 1.9 trillion stimulus package proposal from US President elect Joe Biden.

At the closing bell, the BSE Sensex stood lower by 549 points. Meanwhile, the NSE Nifty ended down by 162 points.

Tech Mahindra and HCL Tech were among the top losers today. HDFC Bank share price was in focus today, ahead of its December quarter earnings on Saturday.

SGX Nifty was trading at 14,460, down by 168 points, at the time of writing.

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The BSE Mid Cap index ended down by 1.3%, and the BSE Small Cap index ended down by 1.1%.

On the sectoral front, IT stocks, realty stocks and oil & gas stocks were among the hardest hit.

Asian stock markets ended on a mixed note. As of the most recent closing prices, the Hang Seng was up 0.4% and the Shanghai Composite ended flat. The Nikkei ended down by 0.6%.

US stock futures are trading lower today indicating a negative start for Wall Street indices.

Nasdaq Futures are trading down by 22 points (down 0.1%), while Dow Futures are trading down by 83 points (down 0.3%).

The rupee is trading at 73.09 against the US$.

Gold prices are trading up by 0.2% at Rs 49,289 per 10 grams.

To know more about gold, check out our detailed article on how to invest in gold here: How to Invest in Gold?

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Here are Top 5 Factors Why Indian Stock Markets Plunged Today

Weak Global Cues: Asian share markets stumbled lower in afternoon trade, reversing earlier gains as rising Covid-19 cases in China reinforced investor concerns over the prospects for a global economic recovery. Japan's Nikkei snapped a five-session rally, slipping from a more than 30-year high hit in the previous session.

European stocks are trading on a cautious note as the prospect of tighter lockdowns in Germany and France as well as new Covid-19 restrictions in China cut into optimism about a global economic recovery.

All Sectoral Indices in Red: Barring telecom stocks, all sectoral indices witnessed huge selling pressure. IT and oil & gas stocks were among the hardest hit.

Profit Booking: Share market succumbed to profit-booking as valuation is near-record high.

Our editors have been pointing out for many weeks now about the risky nature of the market as Covid-19 remains an overhang and the economic outlook remains uncertain.

Retail Prices Fall Sharply in December: India's consumer price index (CPI) inflation cooled in December 2020 as prices of kitchen staples eased, and would have been much lower but for a rise in retail prices of rice, pulses and cooking oil, latest data show.

The rise in CPI in December 2020 was the slowest since September 2019 and was also below the 6% mark for the first time since March 2020.

Falling Oil Prices: Crude oil prices fell today as concerns about Chinese cities in lockdown due to coronavirus outbreaks tempered a rally driven by strong import data from the world's biggest crude importer and US plans for a large stimulus package.

We will keep you updated on how these factors develop in the coming days and what effect they have on Indian stock markets. Stay tuned!

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Speaking of the current stock market scenario, note that since the lows in March 2020, the smallcap index has gained more than 100%.

While caution is indeed warranted, Richa Agrawal, Research Analyst at Equitymaster, thinks there is still a lot more steam left to this smallcap rally.

Despite rallying more than 100% since the March 2020 lows, Richa believes small-cap stocks are set for a massive up move in 2021 and beyond.

Here's what she wrote in a recent edition of Profit Hunter...

  • The P/E for smallcap index doesn't make sense. There are thousands of listed small companies. Some have negative earnings. The base is not a valid data to work with.

    That said, the closest proxy to relative valuations is the Smallcap to Sensex ratio,

    Historically, this ratio has averaged 0.43x. In the previous mega runs of the smallcap index, this ratio has gone as high as 0.75x.

    In January 2018, when smallcaps peaked, the ratio was at 0.58x.

    Guess where this ratio is now after a 100% run up in the smallcap index?

    0.38.

    It's lower than the median over 2 decades.

Richa believes if you focus on the quality of business, margin of safety in valuations, and an optimum asset allocation, you are likely to create huge wealth for yourself.

In news from the media sector, Den Networks was among the top buzzing stocks today.

Shares of the company jumped nearly 7% today after the firm announced robust earnings for the December quarter. The firm posted a whopping 237% rise in net profit at Rs 655 million versus Rs 193 million in the year-ago period.

Its revenue rose 8% to Rs 3.4 billion in Q3FY21 against Rs 3.2 billion in Q3FY20.

EBITDA was up 12% YoY at Rs 650 million while EBITDA margin slightly improved to 19% in Q3 from 18% in the previous year.

The company received a tax rebate of Rs 24.6 million in Q3FY21 as against a tax expense of Rs 268 million in the same quarter last year.

On the operational front, subscription revenue fell 3% YoY to Rs 2 billion in Q3.

Den Networks share price ended the day up by 2.2%.

In news from the energy sector, public sector utility GAIL today announced share buyback of 6,97,56,641 equity shares at a price of Rs 150 for an aggregate consideration of Rs 10.46 billion.

The company's board also approved payment of interim dividend for the FY 2020-21 at Rs 2.50 per equity share on the paid-up equity share capital of the company.

The record date for dividend as well as for the purpose of share buyback has been fixed at 28 January 2021.

The government has asked at least eight state-owned companies to consider share buybacks as it scours for ways of raising funds to rein in its fiscal deficit.

The firms asked to consider share buybacks include miner Coal India, power utility NTPC, and minerals producer NMDC.

GAIL share price ended the day down by 3.8%.

Moving on to news from the defence sector, leading defence company Thales on Thursday said it and state-run Bharat Dynamics (BDL) have signed an agreement to work in partnership on an air defence system with the support of the Indian and British governments.

Through the agreement, BDL will become a part of the STARStreak missile system's global supply chain, providing the opportunity for export of Indian manufactured components to this system's existing and future customers, including the UK Armed Forces, Thales said in a statement.

The "teaming agreement" was signed by Thales and BDL in the presence of UK and Indian government representatives in a virtual ceremony on January 13.

The statement quoted British Defence Minister Jeremy Quin saying that co-operation between the UK and India continues to develop at pace with much closer ties within our defence equipment programmes and systems.

The agreement will provide the opportunity for BDL to offer a ''Make in India'' STARStreak solution to the Indian government, with a capability that will match the immediate air defence needs of the Indian Army and Air force, and with 60% of the system manufactured in India.

Bharat Dynamics share price ended the day down by 1%.

Co-head of Research at Equitymaster, Tanushree Banerjee keeps a close watch on stocks in the defence space. As per Tanushree, defence will be a big wealth-creating opportunity.

Last year in June, she recorded a video about India's best defence stocks.

Tune in to the video here:

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Trades Over 200 Points Lower; Dow Futures Down by 173 Points
12:30 pm

Share markets in India are presently trading on a negative note.

The BSE Sensex is trading down by 296 points, down 0.6% at 49,287 levels.

Meanwhile, the NSE Nifty is trading down by 104 points.

Bharti Airtel and UPL are among the top gainers today. BPCL and Hindalco are among the top losers today.

The BSE Mid Cap index is trading down by 0.7%.

The BSE Small Cap index is trading down by 0.6%.

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On the sectoral front, stocks from the software sector, are witnessing most of the selling pressure.

On the other hand, stocks from the telecom sector are witnessing most of the buying interest.

US stock futures are trading lower today, indicating a negative opening for Wall Street.

Nasdaq Futures are trading down by 43 points (down 0.3%) while Dow Futures are trading down by 173 points (down 0.6%).

The rupee is trading at 73.02 against the US$.

Gold prices are trading down 0.3% at Rs 49,060 per 10 grams.

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In international markets, gold prices moved higher today after US President-elect Joe Biden unveiled a massive US$ 1.9 trillion stimulus package proposal. The precious metal was also supported as US Federal Reserve Chair Jerome Powell maintained his commitment to keep monetary policy dovish.

Gold prices fell for the second day in Indian markets with futures on MCX edging lower by 0.2% to Rs 49,122 per 10 grams. In the previous session, gold had declined 0.3%.

Note that gold prices in India have struggled for more than a week, tracking global cues, as rising US bond yields have increased the opportunity cost of holding the precious metal.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?

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Speaking of stock markets, in his latest video, Rahul Shah, Co-Head of Research at Equitymaster discusses how to alternate between a deep value portfolio and gold to earn great returns.

In the video below, Rahul discusses how to combine the two in a smart way and benefit from the individual strengths of each asset class.

Tune in here to find out more:

Moving on to stock specific news...

Among the buzzing stocks today is Tata Steel Long Products.

Tata Steel Long Products reported a consolidated net profit of Rs 3 billion for the quarter ended December (Q3FY21), on the back of strong operational performance. The Tata group company had posted a consolidated net loss of Rs 1.1 billion in the same period a year ago.

The company's revenue from operations grew 37% year-on-year (YoY) at Rs 13.6 billion as against Rs 9.9 billion in the corresponding quarter of the previous fiscal and its earnings before interest, taxes, depreciation, and amortization (EBITDA) margin stood at 30.1% for the quarter.

Despite maintenance shutdowns during the quarter, the company achieved the highest ever quarterly crude steel production with a growth of 3% quarter on quarter (QoQ) and 10%YoY on the back of debottlenecking.

The company also saw strong steel sales momentum but sales volumes were constrained by lower opening inventory post strong sales in Q2FY21. As a result, deliveries were lower by 10% sequentially but up by 2% on a yearly basis.

Tata Steel Long Products is in the business of manufacturing high alloy steel, primarily for the auto sector and wire rope industry. With a one million tonne capacity, it is one of the largest specialty steel plants in India in the long product segment.

We will keep you posted on more updates from this space. Stay tuned.

At the time of writing, Tata Steel Long Products share price was trading up by 8.9% on the BSE.

Moving on to news from the telecom sector...

MSCI To Raise Weight of Bharti Airtel In February Quarterly Index Review

Index provider MSCI on January 14 said that Bharti Airtel will be a part of its February 2021 quarterly index review while the National Securities Depository (NSDL) has updated the foreign investment limit for the company to 100% from 49%.

"The proforma foreign ownership limit and upward movement of the adjustment factor due to the foreign room will be implemented as part of the upcoming February 2021 Quarterly Index Review," said MSCI.

The MSCI quarterly review will be announced on February 9 and will be effective from March 1.

In January 2020, Bharti Airtel had got approval from the Department of Telecommunications to increase its foreign investment limit to 100% of the paid-up capital. However, some of its subsidiaries were awaiting approvals. As a result, there was a weightage drop in MSCI index rebalancing in August 2020 which caused significant outflows.

Then on January 12, 2020, the company said it had received approvals for its relevant downstream investments and it was initiating the process to revise its foreign investment limit, as notified to its depositories, to 100% with immediate effect.

The revision of foreign investment limit is expected to lead to around US$ 700 million worth of inflow in Bharti Airtel due to increase in MSCI weightage.

How this pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

Speaking of the stock markets, here is an illustration of the four phases that a stock goes through during its life cycle. The cycle repeats itself after the stock goes through all these four stages.

This cycle defines everything in markets. If you can master this cycle, then nothing can stop you from making huge profits.

If you're interested to know how a stock's life cycle can offer you the opportunity to make money in every phase, you can read about it in one of the recent editions of Profit Hunter: One Cycle That Defines Everything in the Markets

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.


Sensex Opens Marginally Lower; Bharti Airtel Jumps 4%
09:30 am

Asian stock markets are trading on a mixed note today as expectations of large US stimulus under President-elect Joe Biden shored up sentiment.

The Hang Seng is trading up by 0.2% while the Shanghai Composite is down 0.2%. The Nikkei is down 0.1%.

In US, Wall Street indices pared gains to end slightly lower on Thursday, with tech shares declining, as traders awaited the unveiling of a potentially big economic stimulus package.

The three major indexes were little changed even after the Labor Department's weekly jobless claims report showed that initial claims spiked to the highest level since August last week.

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The Dow Jones Industrial Average ended down by 0.2% while the tech heavy Nasdaq ended down by 0.1% after hitting an all-time high earlier in the session.

President-elect Joe Biden unveiled a US$ 1.9 trillion stimulus package proposal on Thursday, saying in prime-time remarks that bold investment was needed to jump-start the economy and speed up the US response to the coronavirus pandemic.

Back home, Indian share markets have opened the day on a negative note, following the trend on SGX Nifty.

Market participants are tracking L&T Finance share price and PVR share price as these companies are set to announce their December quarter results later today.

The BSE Sensex is trading down by 77 points. Meanwhile, the NSE Nifty is trading lower by 29 points.

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Bharti Airtel and Titan are among the top gainers today. Asian Paints is among the top losers today.

Both, the BSE Mid Cap index and the BSE Small Cap index have opened up by 0.2%.

Sectoral indices are trading mixed with stocks in the telecom sector and metal sector witnessing buying interest.

Auto stocks and IT stocks, on the other hand, are trading in red.

The rupee is trading at 73.06 against the US$.

Gold prices are trading down by 0.1% at Rs 49,181 per 10 grams.

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Speaking of stock markets, in his latest video for Fast Profits Daily, Vijay Bhambwani shares his top 3 Nifty and Sensex ETFs as well as the number one Bank Nifty ETF.

In of his prior videos, Vijay had also discussed about his top 5 gold ETFs. That video has been quite popular.

Tune in to the below video to find out which ETFs are best.

In latest developments from the electric vehicles (EV) space, MG Motor India said on Thursday it has set up a 60-kilowatt superfast public electric vehicle (EV) charging station in Mangaluru in collaboration with Tata Power, which takes the total number of such charging stations to 15 across 10 cities.

The latest public EV charging station is available to all vehicles compatible with CCS fast-charging standard and in line with MG's commitment to provide a five-way charging ecosystem to its customers, the car maker said in a statement.

The setting up of the facility in Bengaluru, which comes close on the heels of the launch in Coimbatore, is part of MG Motor India's initiative to enhance the national EV charging ecosystem with 50 kW and 60 kW DC superfast charging stations.

MG Motor India Chief Commercial Officer Gaurav Gupta said, "Mangaluru is one of the fastest-growing cities in India. As technology is playing a key role in this development, it is natural for this technological integration to also reflect in people's lifestyle."

Starting with Delhi-NCR, MG has now installed 15 superfast charging stations across 10 cities in India. Its charging infrastructure covers major metropolitans, including Mumbai, Bengaluru and Delhi-NCR, and tier-2 cities such as Ahmedabad, Lucknow, Agra, Coimbatore and Nagpur.

Note that earlier this week, billionaire Elon Musk-led Tesla registered a subsidiary company in India.

According to a Registrar of Companies (RoC) filing, the new entity Tesla India Motors and Energy Private is registered in Bengaluru, Karnataka and is classified as a subsidiary of a foreign company.

Note that Tesla's likely entry into India comes at a time when the union and state governments have been encouraging higher adoption of green vehicle technologies to help bring down the carbon footprint.

We will keep you posted on more updates from this space. Stay tuned.

Speaking of electric vehicles, note that the power ministry has approved setting up 2,636 electric vehicle charging stations across 62 cities in 24 states.

Here's what co-head of Research at Equitymaster, Tanushree Banerjee wrote about electric vehicles in one of her editions of Profit Hunter:

  • 106 public and private entities have approached the government for permissions to set up about 7,000 EV charging stations.

    This clearly shows the vehicle manufacturers have enough incentive to capture this latent demand.

    The tax benefit in terms of a lower GST rate (at 5%) is a further shot in the arm of the EV industry.

As per Tanushree, electric vehicles are very much on their way to invading Indian roads. The threat of disruption in this era is something you cannot ignore.

Tanushree believes one of the companies manufacturing lithium ion batteries for powering electric cars will be a key catalyst for the Rebirth of India.

In news from the IT sector, India's third-largest software services provider, HCL Technologies, today reported a 26.7% jump in consolidated profit at Rs 39.8 billion for the quarter ended December 2020, versus Rs 31.4 billion in the previous quarter.

Consolidated revenue for the quarter increased to Rs 193 billion, driven by broad-based growth in segments and geographies. Revenue stood at Rs 185.9 billion in the September quarter.

Dollar revenue during December quarter stood at US$ 2,617 million, up from US$ 2,507 million in the second quarter of FY21.

HCL Technologies share price has opened the day up by 0.2%.

Moving on to news from the oil & gas sector, BPCL is among the top buzzing stocks today.

As per a leading financial daily, the Centre is suspecting that Bharat Petroleum Corporation's (BPCL's) share price is being manipulated as it prepares to divest its controlling stake in the state-run firm.

The concerns over stock price manipulation of India's second-largest fuel retailer have been discussed within the government, considering that its privatization is a key milestone in the Centre's Rs 2.1 trillion divestment target for 2020-21.

"Someone is playing the market to keep BPCL's share price down. This concern has been discussed within the government," said one of the officials, requesting anonymity.

In the past one year, BPCL share price has lost 9.9% against a rise of 3.92% in the BSE Oil & Gas Index. Meanwhile, Reliance Industries has gained as much as 30% while its peers, HPCL and IOC lost 8.3% and 18.7%, respectively.

The government is looking to raise around Rs 900 billion from divesting its stake in BPCL. The government's target price for its 52.98% stake in BPCL is also based on the value of the firm's assets.

Vedanta Group and two American funds - Apollo Global and I Squared Capital have reportedly submitted expressions of interest for BPCL.

How BPCL's divestment pans out remains to be seen. Stay tuned for more updates from this space.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.


SGX Nifty Down 54 Points; Indicates Negative Opening for Indian Stock Markets
SGX Nifty

The SGX Nifty opened on a negative note today.

At 8:10 am, it was trading down by 54 points, or 0.4% lower at 14,565 levels.

Trends on SGX Nifty indicate a negative opening for Indian stock markets.

Asian stock markets rose today, brushing off a late Wall Street dip as expectations of large US stimulus under President-elect Joe Biden shored up sentiment.

Investors kept an eye on Federal Reserve Chair Jerome Powell, who struck a dovish tone in comments at a virtual symposium with Princeton University.

Powell said the US central bank is not raising interest rates anytime soon and rejected suggestions the Fed might start reducing its bond purchases in the near term.

The Hang Seng is trading down by 0.3% while the Shanghai Composite is up 0.6%.

In US, Wall Street indices pared gains to end slightly lower on Thursday, with tech shares declining, as traders awaited the unveiling of a potentially big economic stimulus package.

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The three major indexes were little changed even after the Labor Department's weekly jobless claims report showed that initial claims spiked to the highest level since August last week.

The Dow Jones Industrial Average ended down by 0.2% while the tech heavy Nasdaq ended down by 0.1% after hitting an all-time high earlier in the session.

President-elect Joe Biden unveiled a US$ 1.9 trillion stimulus package proposal on Thursday, saying in prime-time remarks that bold investment was needed to jump-start the economy and speed up the US response to the coronavirus pandemic.

US stock futures opened higher after details of Biden's plan were reported, signalling Wall Street was tracking to open higher today.

Crude oil prices are mixed today as strong import data from China, the world's biggest crude importer, that boosted sentiment earlier ran into concerns about Chinese cities in lockdown due to coronavirus outbreak.

Brent was down 3 cents at US$ 56.69, after gaining 0.6% on Thursday. US West Texas Intermediate crude was up 12 cents at US$ 53.69 a barrel, having risen more than 1% the previous session.

Here are the key events due later today:

  • India - Bank Deposit & Loan Growth Rate
  • India - Forex Reserves & Trade Balance
  • US - Retail Sales & PPI December

Back home, SAIL and Infosys will be among the top buzzing stocks today.

To know the top cues in today's stock market session, check out the pre-open commentary here.

Stay tuned for more updates on Indian stock markets in the upcoming commentary.


Wipro and Infosys Q3FY21 Results, Indigo Paints IPO, and Buzzing Stocks Today
Pre-Open

Indian share markets ended marginally higher yesterday.

At the closing bell yesterday, the BSE Sensex stood higher by 91 points (up 0.2%).

The NSE Nifty closed higher by 30 points (up 0.2%).

BPCL and UPL were among the top gainers.

The BSE Mid Cap index ended up by 0.3%, and the BSE Small Cap index ended up by 0.2%.

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On the sectoral front, gains were largely seen in the energy sector, capital goods sector and healthcare sector.

Metal stocks, on the other hand, witnessed selling pressure.

At 8:00 am today, the SGX Nifty was trading down by 58 points, or 0.4% lower at 14,560 levels. Indian share markets are headed for a negative opening today following the negative trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading down by 1% at Rs 48,813 per 10 grams at the time of closing stock market hours yesterday.

To know more about gold, you can check out our detailed article on investing in gold here: How to Invest in Gold?

Speaking of stock markets, in his latest video, Rahul Shah discusses how to alternate between a deep value portfolio and investment in gold and earn great returns.

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In the video, Rahul discusses how to combine the two in a smart way and benefit from the individual strengths of each asset class.

How good is the result of this combination and what happens when you combine a deep value portfolio of mid and small caps with gold?

Tune in to the video to find out more:

Indigo Paints IPO: Offer Opens on January 20

In latest developments from the IPO space, the initial public offering (IPO) for Indigo Paints will be open for subscription on January 20, 2021 after it received a nod from market regulator earlier this month. The IPO will close on January 22.

The regulator has approved Indigo Paints' plan to raise about Rs 10 billion through the public issue from the capital markets.

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The IPO comprises fresh issuance of shares of Rs 3 billion and an offer-for-sale of up to 58,40,000 equity shares by Investor Selling Shareholder Sequoia Capital through its SCI Investments IV and SCI Investments V and Promoter Selling Shareholder, Hemant Jalan.

The company said that the net proceeds from the issue will be used for expansion of the prevailing manufacturing facility at Tamil Nadu's Pudukkottai and for purchasing tinting machines and gyro shakers. It will also be used for repayment as well as a prepayment of borrowings.

Reports state that the price band will be between Rs 1,480 and Rs 1,500 per share.

Apart from above, Indian Railway Finance Corporation (IRFC) IPO is scheduled to open on January 18, becoming the first public issue of 2021.

The issue will close for subscription on January 20, 2021.

Note that there are at least 15 companies that may come out with their initial public offerings in the year 2021. These include Kalyan Jewellers, Suryoday Small Finance Bank, ESAF Small Finance Bank, Indigo Paints, Brookfield India Real Estate Trust, Barbeque Nation Hospitality, Home First Finance Company and Railtel Corporation of India.

Among these, companies such as Home First Finance, Brookfield REIT and Railtel Corporation of India are expected to launch their IPO in January.

How the IPO market performs in 2021 remains to be seen.

Results Corner: Wipro and Infosys Post Strong Set of Numbers in Q3FY21

Infosys will be among the top buzzing stocks today.

Infosys reported a 16.6% year-on-year (YoY) growth in its consolidated net profit at Rs 51.97 billion for the third quarter of the financial year 2021 (Q3FY21).

The firm had posted a net profit of Rs 44.6 billion in the same period last year.

On a sequential basis, the profit rose 7.3% from Rs 48.5 billion posted for the September 2020 quarter.

Infosys' revenue came in at Rs 259.3 billion, up 12.3% YoY and 5.5% QoQ. In constant currency terms, revenues grew 5.3% which was its highest Q3 sequential growth in 8 years.

Operating profit for the quarter stood at Rs 65.9 billion, up 30.1 YoY, against Rs 50.6 billion posted in Q3FY20.

Infosys said digital revenues crossed 50% of the total revenue. For the year, digital revenues in cc terms were up 31.3%.

The IT major also raised its FY21 revenue guidance to 4.5-5% in constant currency while FY21 operating margin guidance has been revised upward to 24-24.5% on the back of continued strong performance.

To know more, you can read Infosys' Q3FY21 result analysis on our website.

Wipro also posted a strong set of numbers for the December quarter. The company's revenues during the period stood at Rs 156.7 billion while net profit was at Rs 29.7 billion.

Operating margin of the company expanded sequentially by 243 bps to 21.7%, a significant growth in the last 22 quarters. The company surpassed all market estimations and gave a revenue guidance of 1.5%-3.5% for the March quarter.

Wipro CEO and MD Thierry Delaporte said: "Optimisation of operations and sub-contracting has really worked for us. We have also closed a US$ 700 million five-year deal with Metro AG, extendable to four more years with a scope of touching a billion dollars, during this quarter."

The management also announced an interim dividend of Rs 1 per equity share with the record date of January 25.

Wipro has seen growth across all geographies, led by the US with 57.6% contribution to the revenue. Five out of the seven business sectors have grown sequentially by over 4% for the company, which has further added to the strong numbers.

The company's operating cash flows also grew 45% year-on-year (YoY) with a significant improvement in outstanding receivables.

SAIL OFS: Government Plans to Sell 10% Stake

The government of India plans to sell up to 10% equity in Steel Authority of India (SAIL) through an offer for sale yesterday (January 14) and January 15.

The government will sell 5% equity in the central public sector enterprise under the Steel Ministry while keeping the greenshoe option, or option to sell further equity of 5%, in case of an over-subscription.

The floor price of the offer will be Rs 64 per equity share.

The offer for sale (OFS), which will be at a discount from the market price of the stock, has opened today for non-retail investors and will open on January 15 for retail investors. A minimum of 12.5% of equity shares will be reserved for retail investors, while 25% of the offer shares will be reserved for mutual funds and insurance companies.

The government holds a 75% stake in SAIL and is estimated to earn over Rs 26 billion from the present sale. The proceeds will help in moving close to the divestment target of Rs 2,100 billion set for FY21. It had last sold a 5% stake in December 2014.

SAIL is India's largest steel producer with an annual capacity of about 21 million tonnes per annum (MTPA). The company reported a consolidated net profit of Rs 4.4 billion in the September quarter this year, on the back of strong operational performance, versus a net loss of Rs 2.9 billion in the same quarter of previous fiscal.

How this offer for sale pans out remains to be seen. Meanwhile, stay tuned for more updates from this space.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.