The Nifty and the Sensex opened the day on a choppy note after yesterday’s gains. They have since lost ground to trade in the red. The benchmark indices continue to be range-bound this month.
Join us as we follow the top business news through the day.
Cognizant names Rajesh Nambiar as Chairman and Managing Director of India
Nasdaq-listed IT firm Cognizant has appointed Rajesh Nambiar as the Chairman and Managing Director of India and a member of Cognizant’s Executive Committee effective November 9, 2020.
He joins Cognizant from Ciena, a networking, systems, and software company, where he currently serves as Chairman and President of Ciena, India.
“In the repositioned and elevated role of the India Chairman and Managing Director, Rajesh will strengthen our brand positioning in India and enhance our relationships with relevant Indian government agencies, chambers of commerce, universities, the media, and key policy-making bodies, including NASSCOM,” said Brian Humphries, CEO, Cognizant. “Rajesh will also serve as the Executive Committee representative of our nearly 200,000 associates in India,” he added.
In a statement issued by Cognizant, Mr. Nambiar said, “My priority is to build upon Cognizant’s rich legacy of innovation, industry leadership, and client-centric employee culture to help the company engineer modern businesses that improve everyday life.”
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Hero MotoCorp and Harley Davidson to partner for Indian market
Hero MotoCorp on Tuesday said that it has entered into a distribution and licensing agreement with American motorcycle maker Harley Davidson to develop and sell a range of premium motorcycles under the Harley Davidson brand name.
The announcement comes almost a month after Harley-Davidson Inc. announced that it will discontinue sales and manufacturing operations in India as part of a global strategic restructuring plan ‘The Rewire’.
“As per a distribution agreement, Hero MotoCorp will sell and service Harley-Davidson motorcycles, and sell parts & accessories and general merchandise riding gear and apparel through a network of brand-exclusive Harley-Davidson dealers and Hero’s existing dealership network in India,” Hero MotoCorp said in a statement.
It added that as part of a licensing agreement, Hero MotoCorp will develop and sell a range of premium motorcycles under the Harley-Davidson brand name.
Bharti Q2 loss narrows to ₹763 crore
Bharti Airtel on Tuesday reported a net loss of ₹763 crore for the quarter ended September 30 even as it posted its highest-ever consolidated quarterly revenue of ₹25,785 crore driven by a rise in data usage and new 4G users.
The net loss for the second quarter is significantly lower than the net loss of ₹23,045 crore recorded in the July-September 2019 quarter on account of higher provisioning following a Supreme Court order related to adjusted gross revenues (AGR). “Despite being a seasonally weak quarter, we delivered a strong performance with revenue growing at 22% year-on-year,” said Gopal Vittal, MD and CEO, India & South Asia. “Our continued focus on ARPU improvement and cost optimisation led to EBITDA margin expansion by over 158 basis points in the quarter sequentially,” he added. The company said India revenue for the quarter came in at ₹18,747 crore, an increase of 22%, while mobile revenue rose 26%. The ARPU (average revenue per user) increased to ₹162 compared with ₹128 in year-earlier quarter. It added that 4G data customers increased by 48% to 152.7 million, while traffic increased to 77.3 petabytes (PB)/day compared with 48.9 PB/day a year earlier. Meanwhile, the home business segment witnessed a revenue growth of 7.3% with more than 1.29 lakh customers added during the quarter, taking the total base to 25.8 lakh customers.
On the AGR issue, the company said, “The group has represented to DoT that it has already paid more than 10% of the total dues as demanded by the DoT and will ensure ongoing compliance with the Hon’ble Supreme Court’s orders.”
Sensex, Nifty start on choppy note; Bharti Airtel soars 10%
October continues to remain a mixed month for stocks which have managed very little progress.
PTI reports: “Equity benchmarks Sensex and Nifty opened on a volatile note on Wednesday as investors await directional cues from domestic as well as global markets.
After swinging 258 points in the opening session, the 30-share BSE index was trading 75.75 points or 0.19 per cent higher at 40,597.85. Similarly, the broader NSE Nifty advanced 29.90 points or 0.25 per cent to 11,919.30.
Bharti Airtel was the top gainer in the Sensex pack, rallying over 10 per cent, after the country’s second largest telecom operator reported its highest-ever quarterly consolidated revenue, helping it narrow losses in the July-September period.
Consolidated revenue rose 22 per cent to Rs 25,785 crore in the September quarter while net loss narrowed to Rs 763 crore.
M&M, Maruti, Bajaj Finance, Bajaj Finserv, NTPC, Axis Bank and Infosys were also among the gainers.
On the other hand, Kotak Bank fell around 2 per cent, followed by HDFC, HUL, ICICI Bank and Titan.
In the previous session, Sensex surged 376.60 points or 0.94 per cent to finish at 40,522.10, while Nifty climbed 121.65 points or 1.03 per cent to 11,889.40.
Exchange data showed that foreign institutional investors purchased equities worth Rs 3,514.89 crore on a net basis on Tuesday.
According to Arjun Yash Mahajan Head Institutional Business at Reliance Securities, Indian equities are expected to be volatile ahead of monthly derivatives expiry and US presidential election.
However, news pertaining to a fiscal stimulus before Diwali, MSCI rebalancing next month and healthy 2Q corporate earnings are likely to aid the domestic market, he said.
Bourses in Hong Kong, Seoul and Tokyo were trading on a negative note in mid-session deals, while Shanghai was in the positive territory.
Equities on Wall Street ended on a mixed note in overnight session.
Meanwhile, international oil benchmark Brent crude was trading 1.78 per cent lower at USD 40.87 per barrel.”
Tata Motors loss widens to ₹314 cr. on CV decline
Tata Motors Ltd. reported a wider consolidated net loss of ₹314 crore for the second quarter ended September 30 compared with a net loss of ₹217 crore a year earlier.
The auto major had reported a net loss of ₹8,438 crore in the quarter ended June.
Consolidated revenue in the latest quarter declined 18% to ₹53,530 crore due to a decline in commercial vehicle and Jaguar Land Rover (JLR) sales volumes.
“Despite concerns around risk of a second wave of infection in many countries and other geopolitical risks, we expect a gradual recovery of demand and supply in the coming months,” the company said in a regulatory filing.