Sensex opens 83 points higher; Infosys, Tech Mahindra, HCL Tech gain

Benchmark equity indices BSE Sensex and NSE Nifty opened higher on February 12 following heavy buying in IT and banking majors. The 30-share index opened 83 points up at 51,614.77, while the 50-share Nifty index kicked off the day at 15,186.20, up 13 points against the previous close.

As many as 12 stocks in the Sensex pack were in the green with Infosys gaining the most 1.73%. It was followed by Tech Mahindra (up 1.77%), HCL Technologies (up 1.38%) and TCS (up 0.80%).

Stocks in news:

Power Grid: Power Grid Corporation of India rose 0.07%. The company reported 26.04% rise in consolidated net profit to Rs 3,367.71 crore on 8.67% rise in total income to Rs 10,795.08 crore in Q3 December 2020 over Q3 December 2019.

ITC: ITC dropped 2.72% after the company reported 11.29% fall in consolidated net profit to Rs 3,526.55 crore on 0.52% rise in total income to Rs 13,625.41 crore in Q3 December 2020 over Q3 December 2019.

ACC: ACC fell 1.01%. The company’s consolidated net profit jumped 72.8% to Rs 472.44 crore on 2% rise in revenue from operations to Rs 4144.72 crore in Q4 December 2020 over Q4 December 2019. During the quarter, the cement major recorded an exceptional expense of Rs 176 crore in respect of impairment of assets at Madukkarai unit as the carrying amount exceeds its recoverable amount and disclosed as an exceptional item.

Ashok Leyland: Ashok Leyland lost 3.7% after the company reported 46.85% fall in consolidated net profit to Rs 14.24 crore on 15.19% rise in total income to Rs 6,000.28 crore in Q3 December 2020 over Q3 December 2019.

Oil India: Oil India declined 2.38%. The company reported 25.42% rise in consolidated net profit to Rs 889.69 crore on 29.61% fall in total income to Rs 2,439.88 crore in Q3 December 2020 over Q3 December 2019.

Sun Pharma: Sun Pharmaceutical Industries fell 0.95%. Sebi on Thursday issued Settlement Orders in respect of adjudication proceedings initiated pursuant to the show cause notices issued by Sebi on May 19, 2020 to Sun Pharmaceutical Industries, and the Whole-time Directors and certain officers at the relevant time. The aggregate settlement charges were Rs 2.92 crore.

RITES: RITES rose 0.79%. The company has, in consortium, emerged as L-1 bidder for a General Consultancy order from Haryana Rail Infrastructure Development Corporation for their Haryana Orbital Rail Corridor (HORC) which is a new electrified Broad-Gauge double line (about 144 kms) from Palwal to Sonipat via Sohna, Manesar and Kharkhoda in the state of Haryana with speed potential of 160 kmph. Fee payable to the consortium will be about Rs 61 crore.

Global Markets:

Overseas, Asian stocks were trading on a mixed note on Thursday as multiple major markets in the region were closed for holidays. Markets in China, Japan, South Korea and Taiwan were closed for holidays.

In US, the Nasdaq and S&P 500 eked out modest gains on Thursday with investors betting on more fiscal stimulus, but U.S. President Joe Biden said China was poised to “eat our lunch,” a warning that tempered enthusiasm for a market near record highs. The Dow Jones Industrial Average ended near the flatline.

Federal Reserve Chairman Jerome Powell said Wednesday that the economy faces challenges in the labor market, and so monetary policy needs to stay “patiently accommodative.” In remarks at the Economic Club of New York, Powell said the employment picture is a “long way” from where it needs to be.

The number of Americans filing new applications for unemployment benefits inched down last week. Initial claims for state unemployment benefits totalled a seasonally adjusted 793,000 for the week ended February 6, compared to 812,000 in the prior week, the Labor Department said on Thursday.

Back home, domestic equity benchmarks ended near the day’s high on Thursday. The barometer index, the S&P BSE Sensex, rose 222.13 points or 0.43% to 51,531.52. The Nifty 50 index gained 66.80 points or 0.44% to 15,173.30.

Foreign portfolio investors (FPIs) bought shares worth Rs 944.36 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 707.68 crore in the Indian equity market on 11 February, provisional data showed.