 "Markets turn choppy; Infosys trims losses")
At 10:50am, the BSE S&P Sensex was up 58 points at 27,701 while the Nifty50 was trading 12 points higher at 8,585. In the broader market, the BSE Midcap and Smallcap indices were up 0.6% each. Market breadth was positive with 1446 gainers and 648 losers on the BSE.
Infosys which dropped over 5% after it lowered its revenue guidance was down 1.5%. The IT major lowered its revenue guidance for FY17 to 8%-9% from 10.5%-12% in constant currency terms.
TCS was up 0.8%.TCS beat estimates on margin and net profit growth, but missed expectation on topline growth. The company’s consolidated net profit grew 4.3% quarter-on-quarter (QoQ) to Rs 6,586 crore. Revenue rose 0.1% at Rs 29,284 crore sequentially. The operating profit margins up 94 basis points sequentially to 26%.
Gainers include, index heavyweight Reliance Industries along with L&T, Tata Motors and ONGC among others.
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(Updated at 9:52am)
Markets were trading flat after the sharp fall in the previous session with Infosys in focus ahead of its second quarter earnings to be detailed shortly.
At 9:52am, the S&P BSE Sensex was down 64 points at 27,579 and the Nifty50 was down 15 points at 8,559.
"Nifty has formed a Strong Bearish Candle on daily chart and given the lowest close in last eight trading sessions. Now weakness may continue till it remains below 8665 zones and holding below 8543-8520 might drag it towards next major support of 8400-8350 zones. While on the upside multiple supports are seen at 8635, 8665 and 8700 zones," Anand Rathi Securities said in a technical note.
Foreign institutional investors were net sellers in equities worth Rs 912 crore on Thursday, as per provisional stock exchange data.
Gains in index heavyweight Reliance Industries helped offset losses in IT majors TCS and Infosys in early trades.
Other gainers include, L&T, Tata Motors, ITC, Maruti suzuki and Asian Paints among others.
TCS was marginally down. The IT major beat estimates on margin and net profit growth but missed expectation on topline growth. TCS reported a net profit of Rs 6,586 crore for the quarter ended September 30, up 8.2 per cent, compared to Rs 6,085 crore in the consecutive quarter last financial year. Revenue grew 7.8 per cent at Rs 29,284 crore, from Rs 27,165.5 crore in the same quarter last year. Europe was the key market to drive growth for the company.
Infosys reversed early losses and was up nearly 2% post its earnings but pared gains on profit taking on cut in revenue guidance for FY17 to 8-9% in constant currency against 10.5%-12%. Consolidated net profit for the quarter ended September 2016 stood at Rs 3,600 crore compared to Rs 3,436 in the previous quarter. Revenue for the second quarter was also higher on a sequential basis. Revenue for the September quarter was Rs 17,310 cr compared to Rs 16,782 cr in the previous quarter.
Hindustan Unilever was down nearly 1%. Unilever, the world’s second-largest consumer goods company, lowered its outlook for India after reporting weak third-quarter results on Thursday, saying tepid demand and competitive intensity posed challenges to it there.