11:oo am: Indian stocks held on to early gains with banks
powering the move up, a day after Kotak announced a merger deal with ING Vysya
Bank.
At the time of this writing, Sensex was up 0.6 percent, or 175 points, to
28,243 while the Nifty gained 0.64 percent, or 54 points, to 8455.
Equities climbed after a flattish start as investors bought into shares of
Kotak Mahindra Bank (up 5.88 percent) and ING Vysya Bank (rose 2.7 percent).
The deal has triggered sentiment that the Indian banking industry is likely
to consolidate and traders picked up shares of smaller private sector lenders
such as South Indian, Dhanlaxmi and City Union. These were up between 3.7
percent and 6.4 percent.
The other counter that saw deal buzz, Tech Mahindra (acquired US-based
telecom service provider LCC for USD 240 million), however saw profit booking
with the stock losing 1.1 percent after a positive start.
As as his been the case with several deals over the past few years, rumours
about the impending announcements had witnessed both shares run up strongly a
few days ahead.
Infosys fell 1.6 percent as more details over the overbilling fraud
committed at its BPO unit came out. Latest media reports said the tech giant is
conducting investigations, and more employees may be asked to leave, after the
CFO of the unit was sacked and the CEO resigned.
Consumer non-durable shares saw some profit booking after standing out for
their resilience during the market consolidation earlier this week. Heavyweight
HUL was off 0.6 percent.
In other news-driven movers, Cipla jumped 3.2 percent after a positive
brokerage call, Gammon india was up 2.3 percent after announcing stake
divestment in Gammon Infra, JM Financial was up after infusing capital into a realty
subsidiary, while Yes Bank gained 3.5 percent after the RBI allowed fresh FII
buying into it. More information please visit this site www.bigprofitbuzz.com
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