Sensex, Nifty may try to rally briefly: Friday closing report

If the Nifty closes below 5,835, the index may head much lower while a close above 5,920 may lead to a short rally

After a volatile session throughout the day, the indices ended in the negative for the third day in a row. Both the Sensex and the Nifty opened well in the positive. The Sensex opened at 19,892 while the Nifty opened 5,938. Both the indices hit their intra day high at the beginning of the session but soon began a downward journey to see some recovery in the last hour of the session. However, sharp selling again resumed towards the end of the session. The NSE saw a volume of 58.44 crore shares.


The indices hit a lower high and a lower low today. The Sensex hit a high of 19,907 and the Nifty hit a high of 5,945. The Sensex hit a low of 19,700 and the Nifty hit a low of 5,870, closing almost at the low of the day. The Sensex closed at 19,748 (fell 57 points, fell 0.29%) while the Nifty closed at 5,886 (fell 21 points, 0.36%).


US stocks rose on Thursday, 25 July 2013. Economic data released on Thursday, 25 July 2013, was mixed. Durable-goods orders in June came in better than expected, but weekly jobless claims posted a modest increase of 7,000 claims to 343,000.


Japan consumer prices rose the most since 2008 in June, an early sign that the world's third-biggest economy may be starting to shake off 15 years of deflation. Consumer prices excluding fresh food increased 0.4% in June from a year earlier, the statistics bureau said in a statement today.


Asian indices had a mixed performance. Nikkei 225 fell the most, 2.97% while Hang Seng was the gainer, rising 0.31%.


Among important news, China ordered companies in 19 industries to cut excess production capacity, raising fear that the demand is set to slow in the biggest consumer of the metal.


Officials working for euro zone finance ministers signed off on the payment of the next batch of aid for Greece on Friday and the money will be disbursed on the approval of member states on Monday, euro zone officials said.


The rupee rose to a five-week high as the Reserve Bank of India's aggressive defense of the currency showed some signs of success, but investors were again set to demand the government pay them handsomely to buy its bonds at an auction on Friday.


Wipro Q1 net profit up 11% aided by weaker rupee

Despite the macroeconomic headwinds, the company is optimistic about the future and has forecasted positive developments for its IT services business. The quarterly results were positive too, aided by a weaker rupee

Azim Premji-led Wipro Ltd on Friday reported an 11% increase in its first quarter net profit to Rs16.23 billion ($273 million) helped by a weaker rupee and positive macroeconomic developments in the US despite a challenging economic climate.


Wipro, the country’s third largest IT company, expects revenues from their IT services business to be in the range of $1,620 million to $1,650 million (based on US dollar/Rs at 57.24), going forward. Operating income to revenue for the IT services segment was 20% for the quarter.


Azim Premji, chairman, said, “We are seeing higher confidence among our clients on the backdrop of positive macroeconomic developments, particularly in the US.”


During the quarter to end-June, Wipro's total revenues from operations increased 5% to Rs97.35 billion ($1.64 billion). The company’s IT services division's revenue was at $1,575 million in dollar terms while it was Rs89.36 billion in rupee terms, up 4.9% and 7%, respectively.


TK Kurien, executive director and chief executive of Wipro, said, “We are seeing a pickup in large deal closures which has reflected in strong order book in the current quarter. Our clients look to technology to pursue growth and profitability and increase organisational agility”


Suresh Senapaty, executive director and chief financial officer of Wipro, said – “Our investments in client mining have shown benefits with strong growth in our top clients. We have given wage hikes for both onsite and offshore employees effective June 2013, which has impacted our operating margins in the quarter.”


The IT Services segment had 147,281 employees as of 30 June 2013, an increase of 1,469 people in the quarter.  During the quarter the company added 28 new customers.


Wipro shares closed Friday 1.7% higher at Rs382.8 on the BSE, while the benchmark Sensex ended marginally down at 19,748.



Abhijit Gosavi

4 years ago

The economy of any nation cannot depend on the success of one industry. While the software companies may be pleased by the fall in the currency, in the long run, this is going to come back to haunt the economy as a whole. The need is to diversify into sectors other than software where export is possible. Of course that needs vision from the finance minister, but ...

Etihad ready to cut number of its directors to two on Jet Airways board
As per the modified agreement, major decisions, including appointment of independent directors, chairman and vice-chairman will now be taken on the basis of majority of votes by the board of Jet Airways
Abu Dhabi-based Etihad Airlines has reportedly agreed to reduce the number of its directors on the Board of Jet Airways (India) Ltd to two from four under the Rs2,058-crore deal. This would give the Indian promoters ‘effective control’ of the carrier.
As per the revised shareholding agreement, Etihad would have two directors on the board of Jet post the deal, as against the earlier proposal of four directors in the 10-member board.
This seeks to address the concerns of Foreign Investment Promotion Board (FIPB) and market regulator Securities and Exchange Board of India (SEBI) with regard to effective control after the foreign direct investment (FDI), which is the largest so far in the Indian aviation space.
This, along with other details of an amended shareholding agreement, has been forwarded to Finance Ministry ahead of the FIPB meeting on 29th July to consider the proposal.
The new agreement says that major decisions, including appointment of independent directors and the chairman and vice-chairman will now be taken on the basis of majority of votes.
However, there will be no change in the shareholding pattern with Etihad picking up 24%, key promoter Naresh Goyal holding 51% and the remaining 25% with others, including institutions and individuals.
Besides Finance Ministry, the Department of Industrial Policy and Promotion (DIPP) would be scrutinising the revised proposal over the weekend so that a firm view could be taken at the meeting on Monday.
On Friday, Jet Airways closed 17.4% up at Rs395.5 on the BSE, while the 30-share Sensex ended marginally down at 19,748.
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