Nifty ends above 5400 led by RIL; Infy dips on Q1 nos
13 Jul 2010
The benchmark Nifty continued its uptrend for fourth consecutive session and managed to close above 5400 mark for the first time since February 5, 2008, led by heavyweight Reliance Industries (RIL). Financial, realty, metal, power and capital goods companies' shares also supported the markets to end in green.
RIL is said to pursuing a third shale gas deal in North America, which is pegged bigger than its earlier buys of Atlas and Pioneer, sources told CNBC-TV18. Reliance had picked up 40% in Atlas Energy's shale asset for USD 1.7 billion and acquired 45% in Pioneer's Eagleford asset for USD 1.3 billion. The stock gained 1.7% post this news and helped the markets as well to turn into positive terrain.
Rise in European markets was also quite supportive; CAC, DAX and FTSE were trading 1.5% higher on earnings optimism, at the time of closing of Indian equities. US index futures were up 0.5-0.8%.
However, the markets remained in negative terrain till 2 pm due to disappointing numbers from IT bellwether Infosys Technologies and profit booking in telecom, FMCG and other technology companies' shares.
India's second largest IT services exporter reported lower-than-expected numbers for Q1FY11. The company's net profit slumped a surprising 7.98% as against CNBC-TV18's estimates of 3.25%. It came in at Rs 1,488 crore as against Rs 1,617 crore, on quarter-on-quarter basis (QoQ). However there was a 4.27% jump in its revenues to Rs 6,198 crore from Rs 5,944 crore, which too was lower than CNBC-TV18's poll that saw net sales at 6,213.9 crore.
Despite poor performance in the first quarter the company has raised its full-year revenue forecast to USD 5.72 versus USD 5.81 billion, a growth of 19-21%, higher than 16-18% projected in April.