Thursday February 21, 01:00 PM
Losing strength? |
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By Equitymaster.com
Although continuing to trade in the positive, the indices pared their early morning gains during the previous two hours of trade. Stocks from the software, metal and power sectors are currently garnering investor attention. However, stocks from the engineering, banking and telecom sectors are facing the brunt of profit booking. The advance to decline ratio is in the favour of the former with 3 advances being recorded for every decline on the NSE.
The BSE Sensex is trading at 17,660 (up 42 points) while the NSE Nifty is trading at 5,170 (up 16 points). The rupee is trading at 40.08 to the dollar.
As per a leading business daily, Indian Hotels (IHCL) has won the bid to develop a resort in Andaman & Nicobar islands in the auction conducted by Andaman & Nicobar Islands Integrated Development (ANIIDCO). In addition to the bid price of Rs 40 m, Indian Hotels will have to pay an annual lease rental of Rs 22 m along with 3% of the project revenue to ANIIDCO. Indian Hotels has proposed to invest Rs 1 bn in developing close to 80 five-star cottages and related infrastructure. The move is in line with IHCL's strategy to spread its wings across different regions to diversify its revenues. While the stock is trading lower by 4%, its peers Hotel Leelaventure (up 4%), EIH (up 2%) and Taj GVK (up 1%) are finding favour.
HCL (HCLL.BO, news) Technologies has acquired CapitalStream, a US-based lending automation solutions provider, in an all-cash deal for US$ 40 m. Capital Stream has a flagship product called FinanceCentre, which is used by top banks like Bank of America and Rabo Bank in North America. FinanceCentre, a multi-tier web-based application, provides end-to-end solutions from prospecting and sales, credit analysis, due diligence, documentation and portfolio monitoring to financial institutions and banks. The product is currently used by over 20% of top banks in North America. The acquisition of Capital Stream will enhance HCL's ability to provide end-to-end solutions through product and multi-service delivery capability to commercial and retail financial institutions. Thus, this strategic acquisition is in line with the company's objective to grow inorganically to be a global leader in selected industry verticals. The stock (up 4%), along with its peers TCS (up 4%), Infosys and Wipro (each up 3%), is trading firm.
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