Thursday December 6, 01:30 PM
Paring gains |
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By Equitymaster.com
The broader markets pared earlier gains during the previous hour of trade. The advance to decline ratio is poised at 3:2 on the BSE. Heavyweights from the power and pharma sectors are witnessing the highest gains.
The BSE Sensex is trading at 19,864 (up 126 points) while the NSE Nifty is trading at 5,985 (up 45 points). The rupee is trading at 39.47 to the dollar.
Software stocks are trading strong with Tech Mahindra (6%) and Infosys (2%) featuring among the major gainers. As per a leading business daily, Wipro (WIPRd.BO, news) 's wholly owned US based subsidiary, Infocrossing Healthcare Services has secured a 9-year contract to provide medicare services to insurers under Missouri's MO HealthNet programme. Infocrossing will handle the system development, system re-engineering and processing operations for the programme from its offices in Missouri, Florida and New Jersey. This is a positive development for Wipro as the deal is expected to garner US$ 407 m in revenues. It may be noted that Wipro had acquired Infocrossing for around US$ 600 m earlier this year. The stock is trading marginally down.
Steel stocks are trading weak with SAIL down 2% and Tata Steel (TISC.BO, news) trading marginally lower. SAIL has been among the major gainers from the steel pack over the last month, gaining as much as 14%. During this time, the company announced its revised plans for Rs 530 bn modernisation and expansion programme. Out of this, Rs 120 to 150 bn over the next five years will be used to upgrade technology and to increase the current production capacity by 26 m tonnes (MT) as against 22 MT planned earlier. A mix of internal accruals and proposed 1:1 debt equity ratio will be used to fund the programme. The company is also evaluating other options such as dilution of government stake. It also plans to invest Rs 20 bn in setting up 10 steel processing units across the country with an investment of Rs 2 bn each. Each unit is slated to come up near consumption centers in industrially backward districts. The move will help the company expand its reach.
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