Kotak Bank Q2 net profit at Rs 942 crore

Private player Kotak Mahindra Bank today reported consolidated net profit of Rs 942 crore for the second quarter ended September 30, 2015-16.

The Group has posted a profit after tax of Rs 718 crore in the July-September quarter of the 2014-15 fiscal.

"The results for the quarter and half year ended September 30, 2015 include operations of erstwhile ING Vysya. Hence, the results...Are not comparable with that of the corresponding period of the previous year," Kotak Bank said in a filing to the BSE.

The Reserve Bank had approved merger of ING Vysya Bank with Kotak Mahindra Bank effective April 1, 2015.

Consolidated total income stood at Rs 6,729 crore for the second quarter of the current fiscal, as against Rs 4,920 crore in the year-ago period.

On a standalone basis, Kotak Bank posted net profit of Rs 569 crore for the quarter ended September 30, 2015. It had a profit of Rs 444 crore for the second quarter of last fiscal.

Total Income stood at Rs 4,621 crore for the quarter ended September 30. It was at Rs 2,819 crore in the same quarter last fiscal.

On a standalone basis, gross non-performing assets as a percentage of gross advances rose to 2.35 per cent in the September quarter. This is up from 1.89 per cent in the corresponding period a year ago.

Kotak Bank stock was trading at Rs 691.50, up 4.20 per cent, over previous close on BSE. 

Sensex down 3% for the week.

With selling activity intensifying during the closing stages, indices in the Indian stock markets edged lower and closed deeper in the red. The BSE-Sensex closed down by 181 points, NSE-Nifty closed with losses of 46 points. S&P BSE Midcap and S&P BSE Smallcap indices too witnessed similar trends with the Mid Cap index losing 0.2%, while the Small Cap index fell by 0.8%. Capital goods and FMCG stocks were the biggest losers today.

Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.78%, while the Hang Seng led the Shanghai Composite lower. European markets are mixed today. The CAC 40 is up 0.27% while the DAX has gained 0.25%. The FTSE 100 is off 0.12%. The rupee was trading weak at 65.22 against the US$ at the time of writing.

As per a leading financial daily, Bharat Petroleum Corporation (BPCL) is in talks with foreign companies to sell a 24% stake in its 120,000 barrels per day (bpd) Bina refinery in Madhya Pradesh, which is jointly owned by BPCL and Oman's state oil firm. The company wants to boost the capacity of the refinery by about 30%. The expansion of the refinery reportedly could cost US$460 million and would be completed by 2018, which has started to make money after quarters of losses. BPCL and Oman Oil Company could make a public share offer next year if a deal is not sealed.

Furthermore, BPCL could also buy Latin American crude for its 190,000 bpd Kochi refinery in southern India once its capacity is raised to 310,000 bpd next year and its capabilities could be enhanced to process cheaper and heavier grades.

Given the plunge in oil prices during the year, companies from the downstream segment (retail) have seen their stock prices rise while those in the upstream segment (exploration and refining) have been battered. 2015 has been a mixed year for the stocks from the oil and gas sector. In our recent editions of '5 Minute Wrap Up', we highlight the companies that have outperformed the Indian benchmark and how oil prices play an important role in determining the fortunes of companies in the energy space.

HCL Technologies one of the leading global IT services provider has reportedly acquired Minneapolis-based PowerObjects - a leading North American provider of Microsoft Dynamics CRM. This will bolster HCL's global applications business, which offers transformational programs and complex application management for a myriad of clients' technology landscapes. This acquisition enables HCL to take advantage of the rapidly-growing global CRM industry, as Microsoft Dynamics is one of the fastest growing CRM products in the market.

PowerObjects is a professional services firm completely focused on providing service, support, education and add-ons for Microsoft Dynamics CRM. HCL Technologies ended the trading on a negative note (down 0.78%) on the BSE.

Nokia to give billions back to shareholders as sales dip.

Telecom networks company Nokia saw its shares rise Thursday after it raised its outlook for the year and said it would distribute USD 4.4 billion to shareholders, despite a drop in third quarter earnings.

Revenue in the period was down 2 percent from a year earlier at USD 3.34 billion due to lower demand in North America and Europe. Net profit fell 20 percent to USD 168 million, partly due to shifts in currency values, as well as higher interest and tax expenses.

But operating margins beat market expectations and the company's share price shot up 9 percent to 6.64 euros in early trading in Helsinki.

CEO Rajeev Suri said that although he was not pleased with overall sales, the profitability of the networks sector which accounts for 95 percent of revenue allowed Nokia to raise its full-year forecast. Operating margins are expected near the upper end of 8-11 percent, whereas previously it predicted them around the midpoint of that range.

"Our strong profitability is testament to the strength of our operating model. We said earlier in the year that we would redouble our efforts to ensure our cost structure was aligned to market conditions, and the success of those efforts is very clear in our results," he said.

Sami Sarkamies, senior analyst at Nordea Bank said the result was "excellent, with a positive surprise" from the networks unit.

"Sales were as expected and the margins were clearly higher than expected, allowing the company to improve profitability expectations for the year," Sarkamies said. Lower sales in North America and Europe were partly offset by a 27 percent increase in sales in greater China, both in broadband and global services.

In anticipation of next month's shareholder meeting, which is expected to approve the 15.6 billion euro acquisition of ailing French telecom company Alcatel-Lucent, Nokia said it will pay 4 billion euros to shareholders.

Suri described the acquisition, which will make the Finnish company among the global market leaders in networks, as providing "a very strong long-term value creation opportunity."

Nokia Corp. Has shown signs of improved fortunes since selling off its ailing cellphone unit to Microsoft for 5.4 billion in 2013. In August, it announced the sale of its HERE mapping business valued at some USD 3.1 billion to a consortium of German automakers Audi, BMW and Daimler.

Nokia employed more than 57,000 people in the quarter, up more 8 percent on a year earlier.

No respite for Indian indices.

Ending the day on a negative note, the Indian equity markets lost steam as the day progressed. All major sectoral indices, except consumer durables, closed in the red. PSU and power stocks were the biggest losers. While the BSE-Sensex closed lower by 202 points, the NSE-Nifty closed lower by 60 points. S&P BSE Midcap and the S&P BSE Smallcap also closed on a weak note with both the indices down by 0.4% each.

Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.36% and the Nikkei 225 rose 0.17%. The Hang Seng lost 0.60%. European markets are lower today with shares in London off the most. The FTSE 100 is down 0.98% while France's CAC 40 is off 0.57% and Germany's DAX is lower by 0.01%. The rupee was trading weak at 65.15 against the US$ at the time of writing.

Paint stocks languished in red throughout the trading session with Jenson & Nicholson and Kensai Nerolac bearing majority of the brunt. According to a leading financial daily, Asian Paints' wholly owned subsidiary - Asian Paints (International), Mauritius, has transferred its entire holding of 80% held in the subsidiary company to Samoa Paints, Samoa and 75% holding in the subsidiary company - Asian Paints (S.I.), Solomon Islands, to Berger International, Singapore, a wholly owned subsidiary of Asian Paints (International).

The transfer of stake to Berger International is part of Asian Paints' plans to consolidate its investment in the overseas subsidiaries. Earlier in the year, Asian Paints (International) Limited, Mauritius transferred its entire holding of 49% held in the subsidiary company Asian Paints (Middle East) LLC and 100% of holding in the subsidiary company Asian Paints (Tonga) Limited to Berger International Limited in Singapore.

The script of Asian paints finished on an encouraging note (up 0.3%) on the BSE.

The Indian paint industry has been developing at an optimistic speed since past few years. However, the last few quarters has witnessed quite subdued sales growth owing to sluggish demand. In one of our recent editions of '5 Minute Wrap Up', we outline the performance of three paint companies which dominate the three-fourths of the Indian paint market. the improvement in margins after the decline of crude prices.

According to a leading economic daily, Coal India Ltd (CIL) has entered into a joint venture agreement with GAIL and fertilizer majors Rashtriya Chemical Fertilizers (RCF) and Fertilizer Corporation of India (FCIL) to incorporate a firm for setting up and operating new Ammonia Urea Complex along with power plant and associated facilities at Talcher unit of FCIL in Odisha and to market its products.

Reportedly, The Coal Ministry has agreed to allot a coal block to the proposed JV company on formation of the same and finalization of techno-economic feasibility report.

A consortium of RCF, GAIL, CIL and FCIL had agreed to invest Rs 80 billion for the revival of this urea plant with a production capacity of 1.2 million tonnes per annum.

Banking stocks drag markets down.

The Indian stocks ended the day on a weak note with the market further declining during the final hour of trade. TheBSE-Sensex closed with a loss of about 214 points while the NSE-Nifty closed lower by about 62 points. Barring stocks from the consumer durables and IT spaces, losses were seen across the board. banking and power stockswere amongst the least preferred today. The S&P BSE Midcap and S&P BSE Smallcap indices ended the day on a weak note as well, with the indices closing lower by about 0.5% and 0.1% respectively.

Asian markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.67%, while the Shanghai Composite led the Hang Seng lower. They fell 1.72% and 0.80% respectively. European markets are higher today with shares in Germany leading the region. The DAX is up 0.78% while France's CAC 40 is up 0.60% and London's FTSE 100 is up 0.37%. The rupee was trading at 65.04 against the US$ at the time of writing.

According to a leading financial daily, ABB India has rolled out its first 800kV ultra-high voltage direct current (UHVDC) transformer from its Vadodara facility. The transformer will be installed at Power Grid's Agra substation which is a part of the North East-Agra's 800 kV UHVDC transmission link. Reportedly, UHVDC enables evacuation and transmission of clean energy from the North East to load centers of North India. It also brings cheaper power from the states of Madhya Pradesh and Chhattisgarh to the North Eastern Region with nominal losses.

North-East Agra link will become the world's first multi-terminal UHVDC connection after it's fully commissioned in 2016. ABB has already supplied six units of 400 kilovolt (kV) converter transformer for this project for installation at Alipurduar substations in West Bengal from the facility in Vadodara.

Engineering stocks ended the trading day on a mixed note with Bharat Bijlee and Manugraph India leading the gains. While, Thermax Ltd and Opto Circuits closed with maximum losses.

2015 has been a disappointing year for the Indian engineering industry. Majority of the stocks from the engineering sector have underperformed, barring a few exceptions. The current problems that the sector is going through are largely on the account of the economic recovery not panning out as anticipated and the investment cycle not picking up with stalled projects yet to kick off in a big way. In our recent articles of '5 Minute Wrap Up', we outlined the engineering stocks which have underperformed the Sensex and what is expected of engineering sector going forward.

Moving on to stocks from the information technology space, Wipro has reportedly won a five-year IT contract from Coop Norge Handel AS (Coop Norge). Coop Norge is a leading retailer in Norway with a market share of 33% and over 1,500 outlets. As a part of the agreement, Wipro will transform Coop Norge's enterprise SAP software landscape and upgrade the company's data center infrastructure, geared towards achieving superior performance.

Reportedly, this collaboration will benefit supply chain and distribution operations at the Norwegian retailer, among other functions. It will enable Coop Norge to strengthen its move towards a more efficient operating model with increased reach and availability. This venture leverages Wipro's new age technologies, frameworks and IP including ServiceNXT, the company's integrated Managed Services framework.

Wipro in fact announced its results for the second quarter for FY16 recently. The company reported a 1.6% QoQ increase in sales and a 2.2% QoQ increase in net profits

Sensex down 106 pts on weak Asian cues

The benchmark BSE Sensex fell over 106 points in early trade today on selling in banking, oil and pharma stocks by investors amid weak global trends.

Investors were cautious ahead of October series expiry in the derivatives segment on Thursday, brokers said.

The 30-share barometer, which had lost 108.85 points yesterday, fell further by 106.83 points or 0.39 per cent to 27,255.13.

All the sectoral indices led by healthcare, realty and banking were trading in the negative zone with losses up to 0.39 per cent.

Also, the NSE Nifty declined by 27.40 points or 0.33 per cent to 8,233.15.

Housing finance major HDFC was down over 2 per cent after it posted moderate growth in profit for the second quarter of 2015-16 fiscal.

Among major losers on BSE, oil major ONGC was down 2.5 per cent and Lupin by 2.2 per cent. Metal stocks Hindalco and Vedanta fell up to 2 per cent while telecom major Bhari Airtel fell up to 1 per cent in early trade.

ITC, Coal India and Tata Steel were also down up to 1 per cent, dragging the broader index into negative zone.

On the other hand, auto stocks Maruti Suzuki, Bajaj Auto and Mahindra and Mahindra posted gains of up to 1 per cent.

Brokers said offloading of positions by participants, tracking a weak trend at the other Asian markets as investors await the start of a US Federal Reserve meeting later in the day influenced sentiments.

In Asian markets, Hong Kong's Hang Seng was down by 0.93 per cent, while Japan's Nikkei fell by 0.67 per cent in early trade today. Shanghai Composite index was down 2.09 per cent.
The Dow Jones Industrial Average ended 0.13 per cent lower in yesterday's trade. 
 

Eros Int bounces back; surges 8% as co reassures shareholders

Shares of Eros International Media today made a comeback, rising nearly 8 percent, after the firm reassured its shareholders about the company's "strong" fundamentals.

The stock which received severe drubbing in the previous session, falling over 19 percent, made a smart recovery and rose by 7.7 percent to Rs 381.70 on BSE.

At NSE, it gained 7.73 percent at Rs 380.95.

As per media reports, financial services major Wells Fargo had raised questions about the company's growing business in the United Arab Emirates.

The BSE yesterday sought clarification from the company with reference to the news that Eros International is under Wells Fargo's scanner and reports of stock downgrade.

In a clarification to the BSE yesterday, the company said, "We believe that the recent movement in share price volatility at our NYSE (New York Stock Exchange) listed parent level and at Indian stock exchanges are based on speculative media reports."

Analysts downgrade or upgrade stocks regularly and that as such is not a cause for concern, it said.

It added: "Note that Wells Fargo did not revise down their earnings estimate for the quarter or the year and the price target is USD 22, well above the price the stock was trading on the date it was published.

"We would like to reassure our shareholders that there has been no material change to the previously announced strong fundamentals of the company."

The first quarter results have been strong and nothing has materially changed since then, the company said.

"We will be announcing what we expect to be a strong second quarter in the first half of November," it added.

"We reaffirm our commitment to enhance shareholder value. We believe that the merit in our business and our fundamentals are there for everyone to see as we remain focused on achieving our business goals and objectives," the filing said.

BSE to suspend share trading of non-compliant companies from Nov 16

 Leading stock exchange BSE will suspend three companies from next month for non-compliance with listing agreement clauses relating to corporate governance norms and shareholding disclosures.

The companies, Terruzzi Fercalx India Ltd, Alka Diamond Industries Ltd and Meuse Kara & Sungrace Mafatlal Ltd, have been given time till November 10 to comply, or be suspended.

While trading suspension will begin from November 16, the exchange also ordered freezing of the entire promoter shareholding of these companies from October 23 till further notice.

"Trading in securities of these companies will be suspended with effect from November 16, on account of non- compliance with Clauses 35 and or 49 of the Listing Agreement for two consecutive quarters -- March and June," BSE said in a circular.

In case any of these companies comply to the satisfaction of the exchange, with all the provisions of the listing agreement including payment of fines on or before November 10 2015, the trading in their securities "will not be suspended".

Otherwise, the suspension will continue till such time the companies comply including payment of fines.

The revocation of suspension would be subject to the companies further complying with the procedure and all extant norms prescribed for revocation of suspension.

According to BSE, 15 days after suspension has been effected, trading in the shares of non-compliant companies would be allowed on restricted basis or in 'Trade for Trade basis in Z group' only on the first trading day of every week for six months. 

Sensex advances 147 pts, Nifty above 8,300 on firm Asian cues

The benchmark BSE Sensex rose by 147 points while the NSE Nifty regained 8,300-mark in early trade today on sustained foreign funds inflows amid a firming Asian cues.
Better-than-expected earnings by telecom major Bharti Airtel also influenced sentiment.

The 30-share index, which had gained 183.15 points in the previous session, surged by 147.33 points, or 0.53 per cent, to 27,618.14 points in early trade.

Among major gainers, Larsen and Toubro, Bajaj Auto, Tata Motors, Hindalco, Hero MotoCorp and ICICI Bank rose up to 1.5 per cent.

All the sectoral indices led by metals, IT and auto were trading in the positive zone with gains up to 0.85 per cent.

The National Stock Exchange's index Nifty reclaimed the 8,300-mark by rising 40.85 points, or 0.49 per cent, to 8,336.30.

Brokers said continued buying by funds and retailers amid a firming trend at other Asian markets after Chinese interest rate cut on Friday buoyed sentiments here.

Japan's Nikkei moved up by 1.21 per cent, Hong Kong rose 0.25 per cent and Shanghai index 0.79 per cent.

The US Dow Jones Industrial Average ended 0.90 per cent higher in Friday's trade.

Rupee recovers 34 paise against dollar in early trade

The rupee strengthened by 34 paise to 64.78 against the dollar in early trade today, snapping its two-day falling streak on fresh selling of the US currency by exporters and banks amid sustained foreign funds inflows.

Forex dealers said a strong opening in the domestic equity market also supported the rupee's uptrend, but dollar's strength against other currencies overseas capped the gains.

The rupee had lost seven paise to end at 65.12 against the US dollar on Wednesday at the inter-bank forex market. The market remained closed yesterday on account of Dussehra.
Meanwhile, the benchmark BSE Sensex jumped 261.13 points, or 0.96 per cent, to 27,548.79 in early trade today.

Sensex narrows gains, up 117 points, Nifty above 8,300

Stock market benchmark BSE Sensex has inched down and is up only 117 points up. The benchmark had climbed over 261 points and the NSE Nifty had reclaimed the 8,300 mark in early trade today, snapping its two-session losing streak, on positive cues from other Asian markets.

Inflows from foreign funds and widespread buying by investors also influenced market sentiment.

The 30-share barometer was up 261.13 points, or 0.96 per cent, to trade at 27,548.79 with all the sectoral indices led by oil & gas, consumer durables, PSU and banking trading in positive terrain with gains up to 1.25 per cent.

The Sensex had lost 77.26 points in the previous two sessions. Stock exchanges were closed yesterday on account of Dussehra.

Tata Steel, GAIL, NTPC, Vedanta Ltd, ITC and ONGC were major gainers that supported the rally.

The NSE Nifty too recaptured the crucial 8,300-mark by surging 73.35 points, or 0.89 per cent, to trade at 8,325.05

Brokers said buying by foreign funds and retail investors tracking a firming trend in other Asian markets following overnight gains in Europe and the US after ECB chief signalled more stimulus before the end of the year buoyed mood here.

Among other Asian markets, Japan's Nikkei was up by 2.35 per cent while Hong Kong's Hang Seng rose 1.41 per cent in early trade today. Shanghai Composite edged higher 0.31 per cent.

The US Dow Jones Industrial Average ended 1.87 per cent higher yesterday. 

Bajaj Auto Q2 net up 58% at Rs 933 cr

Riding on robust sales, Bajaj Auto on Wednesday posted 57.9 per cent rise in net profit to Rs 933.06 crore for the second quarter ended September 30, 2015-16.

The Pune-based firm had reported net profit of Rs 590.90 crore during the July-September period of last fiscal, 2014-15.

Net sales of the company rose by 2.63 per cent to Rs 5,980.63 crore during the second quarter under review, as against Rs 5,826.85 crore in the year-ago period, Bajaj Auto said in a filing to the BSE.

The company's net profit had taken a hit last fiscal as it had paid an exceptional amount of Rs 340.29 crore as national calamity contingent duty (NCCD) during the second quarter of 2014-15.

The company sold a total of 10,56,596 units during the second quarter as compared to 10,55,582 units in the same period of previous fiscal.

During the second quarter, the company sold 9,03,097 motorcycle units in domestic as well as international markets.

In the domestic market, the company's broad strategy is to expand its presence in the mileage segment, reassert its dominance in the sports segment and grow the super sports segment, Bajaj Auto said.

The company is represented by CT100 and Platina in the mileage segment, Pulsar and Avenger in the sports segment and Pulsar RS200 and KTM in the super sports category.

As on September 30, the surplus cash and cash equivalents of the company stood at Rs 10,234 crore.

Bajaj Auto stock was trading at Rs 2,517.30, up 3.24 per cent, on the BSE in the afternoon.

Sensex recovers 73 points on better earnings by bluechips.

 The benchmark BSE Sensex rose by over 73 points in early trade on Wednesday on fresh buying in IT, oil and gas, banking and auto stocks after better than expected earnings by bluechips.

The 30-share index was trading higher by 73.30 points or 0.26 per cent at 27,380.13 points. The barometer had shed 58.09 in volatile trade yesterday.

Also, the National Stock Exchange index Nifty edged up by 18.70 points, or 0.23 per cent at 8,280.35.

Brokers said sentiment turned better after HeroMoto Corp posted encouraging earnings yesterday.

Shares of HeroMoto Corp were trading over 2 per cent higher after company reported 1.13 per cent rise in standalone net profit at Rs 772.06 crore for the second quarter ended September 30.

Among other gainers, Bharti Airtel rose by 2.1 per cent, Reliance by 1.1 per cent, while banking stocks like Axis Bank, ICICI and HDFC Bank rose up to 1 per cent.

Infosys and TCS were also trading in the positive zone.

Among other Asian markets, Japan's Nikkei was up 0.81 per cent and Shanghahi composite index shed 0.17 per cent in early trade today. Hong Kong market are closed today for a public holiday.

The US Dow Jones Industrial Average ended 0.08 per cent lower in yesterday's trade.

Rupee declines 16 at 64.96 against US dollar

Snapping its four-day rising streak, the rupee fell 16 paise to 64.96 against the dollar in early trade due to fresh dollar demand from importers.

Besides, a weak opening in the domestic equity market put pressure, dealers said.

A weakness in the US dollar against major world currencies in the global market, however, limited the rupee fall, they said.

The domestic currency had gained 1 paisa to close at 64.80 in the previous session on selling of dollars by banks and exporters in view of a firm trend in the stock market.

Meanwhile, the benchmark BSE Sensex fell 27.97 points, or 0.10 per cent, to 27,336.95 in early trade today.

'India to see slow recovery amid global woes, rate cut delays'

Indian economy is likely to witness a slow recovery largely due delay in two factors - global revival and lending rate cuts at the domestic front, says a Bank of America Merrill lynch report.

According to the global financial services major, notwithstanding a far more politically stronger government, recovery in the Indian economy would be driven by global turnaround.

"We continue to caution investors about a slow recovery due to twin delays in global recovery as well as lending rate cuts at home," BofA-ML said in a research note.

The recovery in Indian economy is likely to be driven by a pick-up in consumption in the next 12 months, it added.

The global brokerage firm said that the coming months could see a consumption recovery largely driven by four factors - softer lending rates, public sector salary hikes after the 7th Pay Commission, household savings on lower oil prices and a possible hike in wheat MSP before the early-2017 Punjab/UP polls.

The report noted that lending rate cuts rather than reforms will drive cyclical recovery as reforms typically take 5-10 years to push up growth structurally.

Meanwhile, BofA-ML has also trimmed its growth forecast for India to 5.5 per cent from 6 per cent for the current fiscal, as per the old GDP series.

According to the old series, the base year for calculation of national accounts was 2004-05.

The Central Statistics Office (CSO) has now adopted the new series of National Accounts with 2011-12 as base year and subsequently revised the Gross Domestic Product (GDP) growth rate to 6.9 per cent in 2013-14 from 4.7 per cent and 5.1 per cent in 2012-13 from 4.5 per cent.

The April-June quarter GDP slipped to 7 per cent from 7.5 per cent in the preceding quarter.  

Mid, smallcaps in favour today.

After trading range bound for the majority of the day, Indian equity markets closed on a weak note as selling activity intensified in the final hour of trade. Stocks across the board ended on a mixed note with those from the IT, powerand consumer durables' space leading the gains; while metal, realty and oil and gas stocks were not in favour.Vedanta turned out to be the biggest loser today. The BSE-Sensex slipped and closed down by about 58 points while the NSE-Nifty closed down by 14 points. On the other hand, the S&P BSE Midcap and the S&P BSE Smallcap indices closed on a firm note and were up by 0.5% and 0.2% respectively.

Asian markets ended mixed. The Shanghai Composite gained 1.14% and the Nikkei 225 rose 0.42%. The Hang Seng lost 0.37%. European markets opened weak with France leading the downfall. The rupee was trading weak at 64.89 against the US$ in the afternoon session.

According to a leading financial daily, HCL Technologies (HCL) has entered into a Letter of Intent with the Volvo Group for undertaking an outsourcing engagement for its IT infrastructure and operations services. Reportedly, the total contract period is for a length of five years. In addition, HCL would be acquiring from the Volvo Group, its external IT business relating to provision of IT infrastructure, mainframe services and application operation services for an all cash consideration of Swedish Krona (SEK) 1.1 bn (US$138 million). Volvo Group derived revenue of SEK 1.6 bn (US$ 190 million) from external customers during last twelve months.

While all of the IT majors have outperformed the Indian benchmark in the first nine months of 2015, HCL Tech has outperformed its peers. The underperformer has been TCS whose stock has barely moved, though it has managed to do better than the Sensex.

Mining stocks languished in red today with Vedanta Ltd and NMDC Ltd bearing majority of the brunt. According to a leading economic daily, Vedanta Ltd is eying to achieve its target of 5.5 million tonnes (MT) iron ore exports by March next year as it prepares to bid for ore in government run auctions. The company's iron ore division is expecting to mine 5.5MT of fresh iron ore from its mines in Goa. Goa still has about 5 MT of already-mined iron ore to be sold in auctions. The low grade ore is not used by domestic steel makers, and most of it will be exported by March 2016.

Reportedly, Vedanta is in the process of shipping 88,000 tonnes of the steelmaking ingredient to China, with other customers there eager for cargoes. Vedanta bought the iron ore being shipped to China in state auctions in the past month and hopes to purchase more. The scrip of Vedanta closed the trading day down by 6.4% on the BSE.