The New Year has brought cheer to the markets, with plus all over. The Nifty was up by 30 points at 10681 and the sensex was up by88 points at 34592.
ICICI Bank, RIL, HDFC drove the sensex and Nifty to a record close amid earnings. Markets are up by 1% in a week.The markets are up as December quarter earnings, so far have been good. Infosys, TCS and Indus Ind Bank,numbers are largely in line and Karnataka Bank posted a strong q3 with Asset quality improvement.
Infosys q3 results have been good. The Net profit rose to 37.7% to Rs5130 crores in the October December quarter.The bottom line beat estimates after the Company reversed income tax provisions of Rs 1432 crores made in previous years after signing an Advance pricing agreement with US Internal Revenue service. The reversal of Income tax provisions is not a good sign as it is a calculation which has impressed the books. The income is not due to actual performance accept that it has signed an agreement.
TCS fell post q3 earnings to 1.79% to Rs 2740 after announcing 3rd quarter numbers. The company said its sales from the banking and finance sector, which contributes most to TCS fell 2.1%. The markets reacted sharply in between trading, due to the differences between supreme court judges and the Chief Justice, but later recovered. Now, the 3rd December quarter earnings will be out, and markets depend upon the earnings. The mood of the market expects earnings to be good. Some of us,are of the opinion this is a pre budget rally, so it is better to liquidate 75%of holdings and have cash if there is a reaction. The material has been taken from Bloomberg quint and Moneycontrol.com
