Sensex, Nifty continue to be volatile; Dish TV up 3%, Infy weak

Moneycontrol Bureau12:55 pm RBS-Infosys deal fall out: Royal Bank of Scotland (RBS) has been a bank in trouble and calling off the deal with Infosys is a fallout of it says Ganesh Natarajan, Chairman of 5f World & Nasscom Foundation. He believes Brexit is not the underlying reason for cancellation of the deal. Meanwhile, analysts tracking Infosys are working on the implications. Karan Taurani, Senior Analyst, Dolat Capital says Infosys is going to take a hit for about 3-4 quarters. Not only Infosys, the entire IT services industry is going through a substantial transformation, says Natarajan. The need for manpower is going to lessen in the wake of automation for the clients the IT services industry caters to, he adds. 12:30 pm Boardroom: Just Dial has been paying the price for not expanding and executing on the sales side for the last 2 year says CFO Ramkumar Krishnamachari in an interview to CNBC-TV18 after the company posted weak earnings. The company's net profit for first quarter grew 7.9 percent year-on-year (YoY) to Rs 38.9 crore with total income growing 6.2 percent YoY at Rs 176.3 crore. Ebitda, however, dipped 35.2 percent YoY to Rs 29.3 crore with Ebitda margin plunging to multi-quarter lows of 16.6 percent from 27.2 percent in the same quarter last year. However, Krishnamachari says the company has taken corrective steps and it should start yielding results leading to double-digit revenue run rate starting from the third quarter this fiscal.Don't miss: Two Fed rate hikes 'conceivable' in 2016, Sept in play

Investors seem to be in wait and watch mode. The Sensex is up 23.48 points at 28088.09, and the Nifty is down 0.30 points at 8642.25. About 1369 shares have advanced, 949 shares declined, and 156 shares are unchanged.

Coal India, Tata Steel, Hero MotoCorp, Axis Bank and Bajaj Auto are gainers while TCS, Asian Paints, Infosys, GAIL and L&T are losers in the Sensex.

Dish TV is up 3 percent as Dish TV is in the final stages of acquiring Videocon D2H to create India’s largest direct-to-home (DTH) player with almost 45 percent market share. It is learnt that the deal is likely to be a cash and share-swap deal and will be used to pay off lenders of debt-laden Videocon D2H, who have been skeptical over its ability to service the debt.

The deal size as well as valuation for Videocon D2H is anticipated to be lower than USD one billion.

While previous bouts of strength in the yen have pushed Japanese manufacturers to shift production overseas, exporters are coping with the recent currency stresses by penny-pinching - turning off lights and cramming elevators in the hope that nothing more drastic will be needed before the tide turns.

The yen, a safe haven in troubled times, has been climbing in the unsettled period before and after Britain's June 23 vote to leave the European Union (Brexit) upset global markets, moving nearly 10 yen against the dollar since early June to just under 100.