Benchmark stock indices Sensex and Nifty fell in Thursday’s trade, ahead of the kick start of June quarter earnings season. India’s third most valued company by market capitalisation, Tata Consultancy Services, would announce its quarterly results today.
With the results season kicking in from today, analysts believe there will be lots of stock-specific action in response to results.
“Expectations from the IT sector are limited. However, midcap IT is likely to post good results and positive commentary. Banks, despite strong balance sheets and abundant liquidity are struggling with low credit growth. Outperformers in the banking segment will be those who post good credit growth. In autos M&M and Eicher have the potential to outperform,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
At 11.57 am, the BSE Sensex was trading at 83,228.88, down 307.20 points or 0.37 per cent. The NSE Nifty stood at 25,376.70, down 99.40 points or 0.39 per cent. Bharti Airtel fell 1.66 per cent to Rs 984.55 and led the losers at Sensex. It was followed by Tech Mahindra, HCL Technologies, Infosys and Mahindra & Mahindra (M&M), which declined up to 1.5 per cent.
Bharti Airtel, Reliance Industries, Infosys, ICICI Bank and HDFC Bank contributed most to the Sensex’s decline.
RailTel Corporation of India fell 0.59 per cent to Rs 407.85, even as the PSU received work order of Rs 17.47 crore from General Administration Department (GAD) of Chhattisgarh.
Muthoot Capital Services Ltd surged 4.27 per cent to Rs 350.30 after the company board approved issue and allotment of Non-Convertible Debentures (NCDs) up to Rs 125 crores, on Private Placement basis, within the limits as approved by the Board.
TCS fell 0.27 per cent to Rs 3,375.25 ahead of its quarterly earnings.
Brokerage forecast a tepid start to the financial year for the Tata Group IT major. Net profit for the Tata group firm is expected to rise between 1.5 per cent and 3.5 per cent year-on-year (YoY), while sales are seen rising up to 4 per cent YoY. Sequentially, the growth is expected to remain muted, with a few brokerages forecasting a minor revenue dip in constant currency (CC) terms due to a ramp-down in the BSNL deal and weak demand in global markets.
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