The Mint Report for 27 July 2011

The Mint Report for 27 July 2011

HCL Technologies has done better than expected in the first quarter. Its numbers came despite the fact that it had to provision for higher taxes after the government ended a sop to the industry. Net profit gained 9% compared to the previous quarter to Rs510 crore. And revenue climbed 3.9%% to Rs4,300 crore. The firm’s profits were fuelled by higher productivity and forex gains. It also managed to increase its Ebit margins from the last quarter’s 14.5% to 15.5%. But analysts warn that with a round of wage hikes slated for the next quarter, those are likely to dip again. A mixed response from investors sent shares of the company tumbling 2.32% on the BSE to 502.85.

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Finance minister Pranab Mukherjee has made it clear he’s not happy with the current rise in food prices. On Wednesday he described 8% food inflation as unacceptable. The statement came a day after the Reserve Bank increased policy rates by 50 basis points in an effort to tame persistently high inflation.

Indian markets declined for a second straight session in response to the Reserve Bank’s rate hikes in Tuesday. The Sensex dropped 85.97 points to 18432.25. And the Nifty lost 28.05 to 5546.80