Employees work at computers at a brokerage firm in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Stocks Radar: Infosys, Lemon Tree, Cochin Shipyard, Reliance Industries

Indian equity benchmarks opened higher in early trade, led by gains in Infosys. Stocks in Asia, too, tracked a strong U.S. session. The S&P BSE Sensex and the NSE Nifty 50 Index gained nearly half a percent to trade at 35,334.66 and 10,616.45, respectively, as of 10:40 a.m.

Yet, the market breadth was slightly tilted in favour of sellers. Seven of the 11 sectoral gauges fell, led by a 1.44 percent decline in the Nifty Realty Index. The NSE Nifty FMCG Index was the biggest gainer, up 1.18 percent.

Here Are The Stocks Moving The Market This Morning

Infosys Top Performer On Sensex, Nifty

Shares of the IT services provider rose nearly 3.8 percent to Rs 721.80 apiece. The stock is also the best performer on the Sensex and the Nifty, according to Bloomberg data.

Net profit of the company rose 13.6 percent sequentially to Rs 4,042 crore in the July-September quarter, according to its exchange filing. That compares with the Rs 4,110-crore consensus estimate of analysts tracked by Bloomberg. India’s second-largest software services provider also maintained the full-year guidance, backed by strong client addition for the second straight quarter.

Brokerages maintained their stance on Infosys amid large fresh deal wins, even as margins missed estimates.

Other Key Highlights

  • Revenue in dollar terms rose 3.2 percent quarter-on-quarter to $2,921 million.
  • Operating profit rose 14.7 percent to Rs 4,894 crore.
  • Operating margin remained largely flat at 23.7 percent.
  • Infosys retained operating margin guidance at 22-24 percent.
  • It maintained revenue guidance for 2018-19 in constant currency at 6-8 percent.

Lemon Tree Gains After Signing Licence Pact For New Hotel

Shares of the hotel chain rose as much as 3.7 percent to Rs 72 apiece.

The company signed a licence agreement for a 70-room property in Mumbai, according to an exchange filing. The hotel is expected to be operational by June next year.

The stock gained 25.2 percent since its listing in April this year, Bloomberg data showed.

Cochin Shipyard Swings On Buyback Proposal

Shares of the state-run shipbuilder hovered between gains and losses to trade at Rs 394 apiece.

The company will buy back 44 lakh shares, representing 3.23 percent of equity shares at Rs 455 apiece, according to an exchange filing. The amount of buyback aggregates to Rs 200 crore, and the record date is set as Oct. 31.

The trading volume is close to 8 times the 20-day average, according to Bloomberg data.

Housing Finance Stocks Extend Decline

Shares of housing finance companies declined for the second straight day. Dewan Housing Finance and Indiabulls Housing Finance were among the top losers on NSE 500 Index.

Stocks Radar: Infosys, Lemon Tree, Cochin Shipyard, Reliance Industries

Reliance Gains Ahead Of Earnings Announcement

Shares of the Mukesh Ambani-led conglomerate rose as much as 1.5 percent to Rs 1180.95 apiece.

Q2 Preview (Sequentially)

  • Revenue expected to rise 8.3 percent to Rs 98,723 crore.
  • Earnings before interest, tax, depreciation and amortisation expected to increase 1.6 percent to Rs 15,393 crore.
  • Ebitda margin seen at 15.6 percent against 16.6 percent.
  • Net profit likely to remain flat at Rs 8,853 crore compared with Rs 8,820 crore.
  • Gross refining margins expected to fall 4 percent to $10 a barrel.

The stock gained 28 percent so far this year compared to a 5.1 percent increase in the Sensex, according to Bloomberg data.

Watch: The Reliance Industries Q2 preview

Other Stocks Reacting To Earnings

Mahindra CIE Automotive (Q2, Year-On-Year)

  • Shares rose nearly 5.5 percent to Rs 272 apiece.
  • Revenue up 21.7 percent to Rs 652.5 crore.
  • Net profit rose 73.9 percent to Rs 42.6 crore.
  • Ebitda increased 36.8 percent to Rs 80.3 crore.
  • Margin stood at 12.3 percent against 10.9 percent.

Shakti Pumps (Q2, Year-On-Year)

  • Shares rose nearly 13 percent to Rs 474.90 apiece.
  • Revenue jumped nearly two-fold to Rs 138.7 crore.
  • Net profit jumped nearly three-fold to Rs 9.3 crore.
  • Ebitda increased 90.8 percent to Rs 20.8 crore.
  • Margin stood at 15 percent compared with 16.1 percent.