Sensex, Nifty regain strength: Thursday closing report

A close above the day’s high may keep the index going higher

Yesterday, we had suggested that Nifty may put in a quick rally from around 6,625. The market did not go below yesterday’s low and started to rally. The  Sensex, Nifty opened well in the positive and after moving in a range for some time, started edging higher and closed near the day’s high. Sensex opened at 22,328 and immediately hit its days low at 22,312 while the Nifty opened at 6,695 and hit a low at 6,684. Sensex hit a high at 22,649 and closed at 22,629 (up 352 points or 1.58%) while Nifty hit a high at 6,783 and closed at 6,779 (up 104 points or 1.56%). The NSE recorded a volume of 83.11 crore shares.

Except for Media (0.28%), all the other indices on the NSE closed in the positive. The top five gainers were PSU Bank (2.90%), Realty (2.64%), Auto (2.26%), Nifty Midcap 50 (2.22%) and Metal (1.82%).

Of the 50 stocks on the Nifty, 47 ended in the green. The top five gainers were Tata Motors (4.63%), Hindalco (4.47%), Jindal Steel (4.08%), Ambuja Cements (3.97%) and ICICI Bank (3.39%). The top three losers were HDFC Bank (1.10%), Power Grid (0.84%) and United Spirits (0.69%).

Of the 1,561 companies on the NSE, 1,027 companies closed in the green, 448 closed in the red while 86 closed flat.

The market remains shut tomorrow, 18 April 2014, on account of Good Friday.

Tata Consultancy was among the gainers in Sensex 30 stocks, after giving out better than anticipated results for the March quarter. It foresees a further rise in revenue growth in the FY15.

Hindalco has been in the news as its senior executives are being questioned for the past few days in connection with the case registered against the company for the allocation of the Talabira-II coal block. But the stock was the top gainer in Sensex 30 pack.

The lone loser among the Sensex stocks was HDFC Bank, which fell on the reports that MSCI has further reduced the weightage of the bank in MSCI India Index.

Apollo Tyres was the top gainer in ‘A’ group on the BSE after the news that the company foresees 50% increase in export revenue from Asia Pacific, West Asia and North African markets in this fiscal.

According to sources, Financial Technologies’ MCX stake is likely to go to multiple investors. Therefore, no single investor is likely to get the entire 24% stake in MCX. FMC sources say Kotak Mahindra Group and CME are currently front-runners for the MCX stake. According to FMC's draft guidelines, which it has submitted to the Finance Ministry, no single foreign investor can own more than 5% stake in MCX. MCX was the top loser in ‘A’ group on the BSE.

Global credit rating agency Standard & Poor's (S&P) today said it may upgrade India's rating outlook, if the government that is elected next month addresses some of the country's fiscal and economic challenges through steps such as passing a goods and services tax. "If in the future they implement policies that effectively addresses some of the credit weaknesses that I have highlighted, we could revise the outlook to stable again," said S&P senior director Kim Eng Tan in a web cast. "In the absence of effective policy action, we could lower the ratings on the sovereign," he added. S&P rates India at "BBB-minus".

US indices closed in the green on Wednesday. In her first major speech on her policy framework as Fed chair, Janet Yellen said US central bankers must be mindful of how short the Fed is of its goals of full employment and price stability.

Except for Shanghai Composite (0.30%), Nikkei 225 (0.15 points) and Seoul Composite (0.01%) all the other Asian indices closed in the positive. Jakarta Composite (0.49%) was the top gainer.

Japan’s consumer confidence fell to the lowest level since August 2011, and the government cut its economic assessment for the first time in 17 months, as a sales-tax increase on April 1 sapped the public’s spending power. The March confidence reading of 37.5 fell by 1 from the previous month, the Cabinet Office said in Tokyo today. About 90% of respondents to the survey saw prices rising over the next 12 months -- the most in comparable data back to 2004.

European indices were trading flat as were the US Futures.


Piramal Enterprises to acquire 20% stake in Shriram Capital for Rs2,014 crore

Piramal Enterprises to acquire 20% stake in Shriram Capital for Rs2,014 crore

Piramal Enterprises Ltd. (Piramal) today announced that it will acquire 20% equity stake in Shriram Capital Ltd (Shriram Capital), a financial service company for Rs2,014 crore to enhance its presence in the financial service sector. Ajay Piramal's Mumbai-based Piramal Enterprises, operates in the pharmaceutical, financial services and information management sectors.

“This investment builds our presence in the financial services sector and we see long term shareholder value creation from our partnership with Shriram Capital. The Company is well known for its culture and values, which resonates well with Piramal Group’s philosophy,” said Ajay Piramal, chairman of Piramal Enterprises.

Last year in May, Piramal had invested Rs1,636 crore in Shriram Transport Finance Company Ltd and acquired 9.9% equity shares.

In 2010,Piramal Healthcare Ltd sold its domestic formulations business to Abbott Laboratories for about USD 3.8 billion. Earlier this month, Piramal Enterprises sold its 11% stake in Vodafone India to Britain's Vodafone Group Plc for Rs8,900 crore.

Commenting on the aquisition, R Thyagarajan, founder of Shriram Group, said “Shriram Group has pioneered providing financial services to the under-served section of the Economy. Our success over the last four decades has been possible only through strategic partnerships. Piramals’ entry into Shriram Capital is a significant milestone for the Financial Services businesses to take a quantum leap in the Group’s contribution to the community at large.”

Shriram Capital is the holding company for the financial services and insurance entities of the Chennai-based group, including Shriram Transport Finance Co and Shriram City Union Finance. It was created to optimise synergies across the group's companies. Shriram Capital's operating entities have over 9 million customers, more than 53,000 employees across 2,600 offices, net profit of Rs800 crore and assets under management in excess of Rs78,000 crore.

Piramal Enterprises shares closed 1.10% up on Thursday at Rs602 on the BSE. While 30-share benchmark Sensex closed 1.54% up at 22,620.


TCS FY14 net profit up 37.7% to Rs19,164 crore on robust growth in Europe

During FY14, TCS profitability grew 37.7%, helped by growth in European markets and investments in digital technologies

Tata Consultancy Services (TCS), India's largest IT company, in FY14 posted 37.7% higher net profit despite the fact that its revenues grew 29.9% due to growth in its European markets and investments in digital technologies.

For the 12 month to end-March, TCS said its consolidated net profit increased 34.7% to Rs19,164 crore from Rs13,914 crore, its total revenues grew 29.9% to Rs81,809 crore from Rs62,989 crore a year ago period. TCS recorded 17.39% volume growth during FY14.

TCS in its regulatory filing said, there was holistic growth across markets and industries during the financial year. Europe led the growth in major markets, while UK and North America continue to grow in line with the company average. All major industry verticals grew in double digits led by Retail, Manufacturing, Life Sciences & Healthcare and BFSI during FY14. TCS’ full services capabilities continue to be leveraged by customers with new service lines growing at a fast pace led by Infrastructure Services, Assurance Services, Global Consulting and Enterprise Solutions.

TCS' chief financial officer, Rajesh Gopinathan said, “Our focus has been to stay disciplined in operations while supporting business growth across multiple markets, industries and technologies. We enhanced our profitability to industry leading levels despite macro and currency volatility through the year. We are continuously investing to stay ahead of the curve.”

In its quarter to end-March TCS net profit increased 48.2% to Rs5,358 crore from Rs3,616 crore, its total revenues grew 31.2% to Rs21,551 crore from Rs16,430 crore a year ago period.

During FY14, TCS $100million+ clients rose to 24 from 17 in FY13. TCS has launched a unique all-female business process service center in Kingdom of Saudi Arabia. TCS also started two new 10,000 seat campus in Gandhinagar as well as Trivandrum. TCS added 61,200 employees during FY14 making its total count to be 3,00,464 employees.

“We have delivered strong growth and strengthened our competitive positioning in the market. We have maintained our momentum, improved our quality of growth, deepened our relationship with customers and expanded our presence in newer markets like Europe during the past 12 months. Our strategic investments including those in Digital Technologies are providing a compelling value proposition as well as helping us anticipate and shape new market trends successfully,” said TCS chief executive officer and managing director, N Chandrasekaran in a regulatory filing.

TCS also declared final dividend of Rs20 per share.

TCS on Thursday at 1.00pm, was trading 0.77% up at Rs2,212 on the BSE, while the 30-share benchmark Sensex was marginally up at 22,443.

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