If Nifty closes above 7,450, there are chances of a strong rally
We had mentioned in Wednesday’s closing report that Nifty, Sensex were under pressure and that Nifty has to close above 7,420 for the downtrend to end. The major indices of the Indian stock markets rallied after three days of losses and closed with small gains over Wednesday’s close. The trends of the major indices in Thursday’s trading are given in the table below:
The National Association of Software and Services Companies (Nasscom) on Thursday revised the growth forecast for the software services sector to between 10-12% for the financial year 2015-16, a statement said. The exports revenue of the industry grew by 12.3% and domestic revenue grew by 10% in 2015-16. The earlier growth projection by the IT software industry body for the present financial year was in the tune of 12%-14%. “Amidst a growth of 0.4% in the global IT-BPM in 2015, the industry is expected to reach an estimated $143 billion in FY2016, doubling its revenue over the last six years and crossing the $100 billion milestone in export revenues,” the statement said. “In addition, e-commerce contributed $17 billion revenue boosting digital consumption. India continues to gain market share in the global sourcing sector and emerges as the largest, most diversified and scalable destination,” it added. “Amidst a volatile global economic environment, the industry has been able to set new benchmarks by growing from strength-to-strength and sustaining its double-digit growth,” BVR Mohan Reddy, chairman, Nasscom said. With an increase in technology spending estimated by global technology analysts, industry expects the double digit growth story to continue in 2016-17. “The IT-BPM industry export revenue is expected to grow by 10%-12% in 2016-17 reaching revenues of $119-121 billion. The industry is expected to add a net employment around 2 lakh,” the statement added. The S & P BSE Information Technology Index closed at 11,179.77, up 0.92% on the BSE.
The government has approved seven infrastructure projects in road and port sectors envisaging an investment of Rs.9,672 crore, an official statement said on Wednesday. "The Public Private Project Appraisal Committee (PPPAC) and the Empowered Committee (EC) both chaired by Secretary, Department of Economic Affairs met on February 2, 2016, and cleared six road projects and one ports sector project with estimated project cost totalling Rs.9672.12 crores," a finance ministry statement said. "Quick clearances given," Economic Affairs Secretary Shaktikanta Das said in a tweet. The projects include four national highway projects, one each in Maharashtra and Himachal Pradesh and two in Uttar Pradesh, and one port project in the coastal state of Goa. Besides, two road projects in Uttar Pradesh have been cleared for Viability Gap Funding (VGF), under which the government gives support to infrastructure projects.
The Adani group would invest about Rs.21,000 crore in Karnataka to expand its power station, and set up a solar project for renewable energy and a sea port on the state's coast, group founder Gautam Adani said on Wednesday. "We are setting up two 800 Mega Watt (MW) plants at our Udupi Power Corporation Ltd. station at Rs.11,500 crore, and a 1,000 MW solar power project at Rs.7,000 crore and a greenfield seaport at Tadadi at Rs.2,000 crore on the coast," Adani said at the state's global investors meet (GIM). Tadadi is in Uttara Kannada district of the state, about 500 km from Bengaluru. The $17.5-billion Ahmedabad-based conglomerate had bought the 1,200 MW Udupi thermal project from Lanco group at Rs.6,300 crore in April 2015. The power plant is located near the temple town of Udupi in the coastal district of Dakshina Kannada, about 400 km from Bengaluru. "As the Udupi plants run on imported coal, we are setting up a captive dredge at the New Mangalore Port Trust at Rs.500 crore to handle about 10 million tonnes of coal per annum. The jetty will create 600 jobs," Adani asserted. The additional investment in the power project will make it the largest independent power producer in the southern state and provide energy to about 20 million homes when 1,600 MW will be added to the grid.
The top gainers and the top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: