After opening the day on a flat note, share markets in India have extended early gains and are presently trading higher, tracking positive global cues.
Benchmark indices gained nearly 1% in today’s volatile session, lifted by a rally in IT stocks.
The BSE Sensex is trading up by 283 points, at 36,300 levels.
Meanwhile, the NSE Nifty is trading up by 72 points.
The BSE Mid Cap index is trading down by 0.2%. The BSE Small-Cap index is trading down by 0.7%.
On the sectoral front, gains are largely seen in the IT sector and the automobile sector.
Telecom stocks, on the other hand, are witnessing selling pressure.
The rupee is trading at 75.24 against the US$.
Gold Prices are currently trading down by 0.1% at Rs 49,129.
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Moving on, Minda Corporation is among the top buzzing stocks today.
Shares of the auto components maker slipped over 5% after it reported a consolidated loss after tax of Rs 3 billion in the fourth quarter ended March 31, on account of impairment charges of one of its arms that have filed for insolvency.
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The company had posted a consolidated profit after tax of Rs 419.2 million in the corresponding period of the previous financial year.
Revenue from operations during the quarter stood at Rs 7 billion as against Rs 7.7 billion in the year-ago period.
The company said its board of directors on Wednesday decided to withdraw financial support to its wholly-owned subsidiary Minda KTSN Plastic Solutions GmbH Co & KG, Germany (MKTSN), according to which MKTSN has filed for insolvency.
Minda Corporation share price is presently trading down by 5.3%.
In news from the telecom sector, shares of Vodafone Idea plunged 15% today as reports suggested the company was up for a long legal battle over its premium plans after Reliance Jio appealed to the telecom tribunal to hear its side before passing an order.
Media reports said Mukesh Ambani-controlled Jio appealed to the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) to hear its side before passing any order on Vodafone Idea’s petition against the regulatory curbs on premium plans.
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The tribunal is set to hear Vodafone Idea’s plea later in the day. Investors were hoping for order in favour of the stressed company but with Jio’s intervention, that may not be so easy.
Earlier this month, Telecom Regulatory Authority of India (TRAI) blocked the lucrative premium plans of Vodafone Idea and Bharti Airtel after Jio complained to the regulator claiming premium plans were discriminatory.
Vodafone Idea share price is presently trading down by 9.1%.
In other news, shares of Tata Communication are locked in the 5% lower circuit limit today.
The stock of the Tata group company has rallied sharply in the past three months after the company delivered strong operating performance during the January-March quarter (Q4FY20).
In Q4FY20, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew 26.8% year-on-year (YoY) at Rs 8.7 billion, while EBITDA margin improved by 360bps at 19.8% during the quarter.
The company witnessed strong profitable growth in the data business. In FY20, EBITDA margins for data business expanded by 310 bps to 22.1% on the back of growth services delivering Rs 2 billion of EBITDA for the year.
Earlier this month, the company received top honours at Frost & Sullivan’s 2020 India ICT Awards, with eight wins in the ‘Company of the Year’ category. All the awards were for excellence in service provision, underlining the company’s dominance in the Indian service provider market.
Speaking of Tata Communications, have a look at the chart below to see how the stock has performed over the past few years:
- What is the reason for this euphoria about the stock?Well, Tata Communication finds itself among the hallowed group of companies that are called ‘Stay-at-home’ businesses today.In the US, stocks like Microsoft, Amazon, Facebook, Apple, and Netflix find themselves in this camp.
These businesses are uniquely positioned among the essentials in a post-COVID-19 world.
This is simply because millions will now choose to work, shop, study, and carry out most activities without leaving their homes.
Telecom and digital businesses no doubt have taken centre stage. Therefore, even a stock like Tata Communications, with no track record of profits, is trading at premium valuations.
But if you ask me, this is a classic case of euphoria. Bull markets are known to thrive in such euphoria about stocks following the latest fad.
Tanushree recently recommended a traditional Indian company to her StockSelect subscribers. The company is competing in the digital space with its latest offerings.
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To know what’s moving the Indian stock markets today, check out the most recent share market updates here.
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Indian Share Market Update: Top Gainers and Losers
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Stock Market Updates
TCS at 52 Week High; BSE 500 Index Up 0.1% (Today’s Market)
Jul 16, 2020, 12:08 PM
TCS share price has hit a 52-week high. It is presently trading at Rs 2,332. BSE 500 Index is up by 0.3% at 13,887. Within the BSE 500, TCS (up 1.2%) and INFOSYS (up 10.5%) are among the top gainers, while top losers are VODAFONE IDEA and HATHWAY CABLE.
MPHASIS Share Price Up by 7%; BSE IT Index Up 4.9% (Today’s Market)
Jul 16, 2020, 12:06 PM
MPHASIS share price is trading up by 7% and its current market price is Rs 1,099. The BSE IT is up by 4.9%. The top gainers in the BSE IT Index are MPHASIS (up 7.0%) and INFOSYS (up 10.4%). The top losers are WIPRO (down 0.8%) and TECH MAHINDRA (down 1.5%).
L&T INFOTECH LTD at All-Time High; BSE IT Index Up 4.9% (Today’s Market)
Jul 16, 2020, 12:06 PM
L&T INFOTECH LTD share price has hit an all-time high at Rs 2,340 (up 3.2%). The BSE IT Index is up by 4.9%. Among the top gainers in the BSE IT Index, today are L&T INFOTECH LTD (up 3.2%) and ORACLE FINANCIAL (up 0.5%). The top losers include WIPRO (down 0.8%) and TECH MAHINDRA (down 1.5%).
ALEMBIC PHARMA at All-Time High; BSE HEALTHCARE Index Down 0.1% (Today’s Market)
Jul 16, 2020, 11:52 AM
ALEMBIC PHARMA share price has hit an all-time high at Rs 988 (up 4.1%). The BSE HEALTHCARE Index is down by 0.1%. Among the top gainers in the BSE HEALTHCARE Index, today are ALEMBIC PHARMA (up 4.1%) and ABBOTT INDIA (up 0.6%). The top losers include GLENMARK PHARMA (down 0.1%) and SUN PHARMA (down 0.2%).
GODREJ PROPERTIES Share Price Up by 5%; BSE REALTY Index Down 0.1% (Today’s Market)
Jul 16, 2020, 11:46 AM
GODREJ PROPERTIES share price is trading up by 5% and its current market price is Rs 900. The BSE REALTY is down by 0.1%. The top gainers in the BSE REALTY Index are GODREJ PROPERTIES (up 5.2%). The top losers are MAHINDRA LIFESPACE (down 0.5%) and PHOENIX MILL (down 0.9%).
Sensex Opens Marginally Higher; Infosys Jumps Over 9% (Today’s Market)
Jul 16, 2020, 09:30 am