Sensex, Nifty open flat; IIFL gains 18%, BHEL & Wipro down

Moneycontrol Bureau

9:45 am Buzzing: Investors are buying shares of IIFL Holdings (formerly India Infoline) on Tuesday after Fairfax India has decided to buy 26 percent equity stake in the company via open offer. The stock shot up 20 percent intraday.

"FIH Mauritius Investments with HWIC Asia Fund (class A shares), I Investments Limited and FIH Private Investments make an open offer to the shareholders of IIFL to acquire up to 8,31,28,852 fully paid up equity shares of face value of Rs 2 each of the company constituting 26 percent of the post-offer equity share capital," said IIFL in its filing to the exchange.

9:30 am Poll: DCB Bank ’s net profit is likely to see a marginal growth of 4 percent at Rs 46.40 crore in April-June quarter from Rs 44.60 crore in corresponding quarter last fiscal. The bank will announce its Q1 results on July 14. According to a CNBC-TV18 poll, its net interest income (NII) may rise 6 percent to Rs 147.4 crore versus Rs 139 crore in year-ago period. In Q4FY15 profit was up 61 percent year-on-year mainly due to tax writeback of Rs 9.3 crore. NII growth, analysts say, may come off on an annual basis mainly due to high base which contained one off income. In Q1FY15, there was one off interest income of Rs 30.4 crore resulting in NII rising 67 percent (YoY) to Rs 139 crore.

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The market has opened on a flat note. The Sensex is up 26.32 points at 27987.51, and the Nifty is up 10.95 points at 8470.60. About 457 shares have advanced, 107 shares declined, and 68 shares are unchanged.

Dr Reddy's Labs, L&T, Vedanta, Cipla and ICICI Bank are top gainers. HDFC Bank, BHEL, ONGC, Wipro and Lupin are among losers. In the midcap space, IIFL is up 18 percent as Fairfax India will acquire 26 percent for Rs1,621 crore.

The Indian rupee opened with a gap down of 7 paise at 63.57 per dollar against previous close of 63.50.

Ashutosh Raina of HDFC Bank said, "The positive developments around Greece have resulted in the dollar gaining against most of the major currencies and increasing the prospects of a US Fed rate hike this year."

Asian shares were mixed following long-awaited deals in Greece and Iran, while attention also fell on China's recent stock rebound.

US stocks closed more than 1 percent higher in light volume trade, following gains overseas on news of a bailout agreement between Greece and its creditors.

Both the Dow and Nasdaq closed above their 50-day moving averages for the first time since June.

European equities ended sharply higher on Monday after European negotiators reached a deal over a third bailout for Greece. News of the deal raised hopes that a so-called Grexit or Greece leaving the euro zone - is off the table, but will need to be approved by the Greek parliament.

The dollar rallies against the euro after a debt deal between Greece and its international lenders renewed focus on the possibility that the US Fed may hike interest rates in September.

The dollar index inched towards the 97-mark. Crude prices continue to decline after reports indicated that an Iran nuclear agreement has finally been reached.

The draft deal allows the United Nations access to all suspect Iranian sites, including military ones.  Gold prices decline as dollar rises.