Mumbai: Indian shares rose on Monday, heading for a fourth consecutive session of gains, as Infosys Ltd surged on the first day of trading since the appointment of co-founder Nandan Nilekani as chairman on hopes that the move would help defuse a months-long row between the founders and the board.
Infosys shares were up 3.8% after earlier rising as much as 4.6% on hopes that the appointment would provide some much needed stability to the company that has been reeling since the shock resignation of chief executive Vishal Sikka, who waged an acrimonious battle with the founders for months over alleged corporate governance lapses.
Analysts warned markets could see some volatility in the days ahead as monthly derivatives contracts are due to expire on Thursday. “There is some sort of relief rally in Infosys,” said Krish Subramanyam, co-head – equity adviser at Altamount Capital Management, adding “there will be some volatility (ahead) as this is the expiry week”.
As of Thursday’s close, Infosys shares had shed 10.6% since 18 August, the day Sikka resigned. IT stocks led the gains. The Nifty IT index rose as much as 1.3% and was on track for a fourth straight session.
Among other gainers, Adani Enterprises Ltd rose as much as 9.3% in its biggest intraday percentage gain since 6 June after it said it plans to begin work on the controversial Carmichael coal project in Australia in October.
Nestle India Ltd touched a one-month high after it reassured investors that it would focus on driving volume growth through new product launches, and Credit Suisse upgraded it to “outperform”.
But Dr. Reddy’s Laboratories Ltd dropped as much as 2.9% after it said that a law firm representing an investor filed a class action lawsuit in New Jersey against the company, its CEO and CFO.
Here are the latest updates and developments from the markets:
■ 12.36pm: BSE Sensex trades higher by 189.70 points, or 0.60%, to 31,785.76, while the Nifty 50 rises 61.35 points, or 0.62%, to 9,918.40.
■ 11.25am: BSE Sensex trades higher by 144.11 points, or 0.46%, to 31,740.17, while the Nifty 50 rises 46.80 points, or 0.47%, to 9,903.85.
■ 10.50am: Dr Reddy’s Laboratories Ltd fell 1.5% to Rs 2,065 after the company said in a notice to BSE that its investors have filed suit alleging violations of US securities laws against the company its chief executive officer and chief financial officer in US.
■ 10.30am: BSE Sensex trades higher by 171.20 points, or 0.54%, to 31,767.26, while the Nifty 50 rises 54.55 points, or 0.55%, to 9,911.60.
■ 10.25am: Gillette India Ltd falls 2.7% to Rs 5,167 after the company said it reported 33.02% decline in its net profit for June quarter to Rs 312.60 crore against Rs 466.70 crore a year ago.
■ 10.20am: Nestle India Ltd rises 3.4% to Rs 6, 815.55 after Brokerage Firm CLSA and Credit Suisse has upgraded the stock to outperform from underperform. CLSA has increased its target price to Rs 7,550 a share while Credit Susse has increased its target price to Rs 7,700 from Rs 6,100 a share.
■ 10.15am: Eicher Motors Ltd rises 2.6% to Rs31619. The company on Saturday said Royal Enfield’s 2017-18 total production capacity planned at 825,000 motorcycles after production begins at new factory in southern Indian city of Chennai. Royal Enfield to invest 8b rupees in 2017-18, mainly on expansion, new products and platforms, technical centers in Leicester, England, and Chennai
■ 10.10am: Hindustan Oil Exploration Co Ltd rose 5% to Rs 77.80 after the company said in a notice to BSE that it started commercial output from Dirok gas field in the northeastern state of Assam after receiving the petroleum mining lease on August 25.
■ 10am: BSE Sensex trades higher by 145.71points, or 0.45%, to 31,737.82, while the Nifty 50 rises 45.30 points, or 0.46%, to 9,902.35.
■ 9.50am: Bharat Bijlee Ltd falls 8% to Rs1,129 after the company said its loss for the June quarter widened to Rs 3.87 crore against Rs 2.15 crore a year ago.
■ 9.40am: Adani Enterprises Ltd rises 6% to Rs 115.55. Adani Group plans to start work on its $16.5 billion Carmichael coal project in Australia in October, chairman Gautam Adani said, buoyed by the dismissal of appeals filed against the project by Australian activists.
Other Adani Group companies were trading higher too. Adani Power Ltd rose 4%, Adani Ports 1% and Adani Transmission Ltd 1.9%.
■ 9.30am: BSE Sensex trades higher by 116 points, or 0.37%, to 31,712.18, while the Nifty 50 rises 33.60 points, or 0.34%, to 9,890.65.
■ 9.25am: DLF Ltd rises 1% to Rs 187.50 after, on Friday, DLF’s audit committee approved a transaction by which the promoters will sell their stake in its rental arm DLF Cyber City Developers Ltd to Reco Diamond, an affiliate of GIC Real Estate, Singapore, for a gross value of Rs 11,900 crore.
■ 9.20am: Infosys Ltd rises 4% to Rs 947 as Nandan Nilekani returns to the company after he was unanimously named by the board as its non-executive chairman in a widely anticipated move.
The appointment, a significant victory for co-founder N.R. Narayana Murthy in his fight against the board of Infosys, will soothe the nerves of the company’s largest investors, who have been spooked by the events of the past week, during which Vishal Sikka stepped down as CEO.
Also read | Betting on Nandan Nilekani’s Infosys
■ 9.15am: Future Consumer Ltd rises 4% to Rs 48.90, while Future Enterprises Ltd is up 5.2% to Rs 46.05 after Future Supply Chain Solutions files a draft red herring prospectus for an initial public officer (IPO) with markets regulator Securities and Exchange Board of India or Sebi.
Future Enterprises to sell 1.96 million shares, or about 5% stake in the unit via the offer. Investor Griffin Partners to sell 7.83 million shares, or 25% stake in FSCSL, according to the draft prospectus.
■ 9.10am: The rupee was trading at 64.88 a dollar, up 0.18% from its Thursday’s close of 64.03. the home currency opened at 63.92 a dollar and touched a high of 63.87 a level last seen on 9 August. Read more
■ 9.07am: The 10-year bond yield was at 6.531%, compared to its previous close of 6.538%. Bond yields and prices move in opposite directions.
Also read | IPOs worth Rs2,000 crore set for September
■ 9.05am: Asian currencies were trading higher as dollar extended its decline after Federal Reserve Chair Janet Yellen dashed expectations on Friday that she would provide clues on monetary policy tightening.
South Korean won was up 0.72%, Taiwan dollar 0.32%, Malaysian ringgit 0.17%, Japanese yen 0.17%, Philippines peso 0.11%, China Offshore 0.08%, China renminbi 0.06%. However, Hong Kong Dollar was down 0.06%.
■ 9.00am: US stocks closed mostly higher Friday on new hopes for tax reform, with the Dow Jones industrial average notching its first weekly gain in the last three weeks.