Nifty ends near 8,600; RIL up 2%, Infosys dips post Q2 earnings

Benchmark indices ended marginally higher, amid a volatile trading session, after gains in oil & gas shares helped offset losses in Infosys and Hindustan Unilever.

Infosys slipped over 2% at Rs 1,026, after hitting 52-week low of Rs 996 in an intra-day trade on the BSE. Infosys reported a better than expected 4.9% growth in consolidated net profit at Rs 3,606 crore for the second quarter ended September 30, 2016 (Q2FY17) over the preceding quarter. Rupee revenue grew 3.1% to Rs 17,310 crore and dollar revenue was up 3.5% at USD 2,587 million on sequentially.

The benchmark S&P Sensex closed at 27,673 levels, up 30 points or 0.1%. Nifty50 index gained 10 points, or 0.1%, to close at 8,583 levels. The broader markets outperformed the benchmark indices. The S&P BSE Midcap and Smallcap rose 0.8% each.

Tata Consultancy Services (TCS) moved higher by 2%, after hitting an intra-day low of Rs 2,299. The company posted 0.3% sequential growth in USD revenues to US$ 4,374 million for the second quarter ended September 30, 2016 (Q2FY17). While TCS beat estimates on margin and net profit growth, but missed expectation on topline growth.

Shares of oil & gas companies ended firm with Oil and Natural Gas Corporation (ONGC), Petronet LNG and Gail (India) hitting their respective 52-week highs on the BSE in intra-day trade. Petronet LNG, Gail (India) and ONGC were up between 2%-5% on the BSE.

Hindustan Unilever ended down 2.3% to Rs 842 on BSE after the company’s parent Unilever lowered its outlook for India.

Larsen & Toubro (L&T) moved higher by over 2% on the BSE after the company said it has won a major order worth Rs 3,799 crore from the Dedicated Freight Corridor Corporation of India (DFCCIL).

Among other shares, Zee Entertainment Enterprises plunged 4% to Rs 527 on the BSE, extending its previous day’s nearly 4% fall, after a media report stating that the Subhash Chandra-promoted company plans to buy Anil Ambani-owned Reliance Broadcast Networks for Rs 1,872 crore.

Infrastructure major Hindustan Construction Company (HCC) in joint venture with VCCL has won a Rs 367.72 crore order for construction of safety tunnel in Manipur. The stock surged over 6%.

Reliance Communications, India’s fourth-biggest cellular carrier by customer base, said on Friday it signed a non-binding term sheet with Brookfield Infrastructure Group to sell its tower assets in a deal that could fetch it an upfront Rs 11,000 crore rupees ($1.65 billion). The stock gained by 2%.

Here are some picks from the week gone by.

Company: Tata Communications CMP: 652.35 Mastermind