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IT stocks edge lower

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Last Updated : Jan 15 2018 | 1:31 PM IST

Key benchmark indices traded with modest gains in afternoon trade even as they partially trimmed intraday gains. At 13:15 IST, the barometer index, the S&P BSE Sensex, rose 255.53 points or 0.74% at 34,847.92. The Nifty 50 index advanced 59.95 points or 0.56% at 10,741.20. Firmness in most Asian stocks supported gains on the domestic bourses. India's industrial production surging at 25-month high pace of 8.4% in November also boosted sentiment.

Indices had opened on a firm note and extended intraday gains till mid-morning trade. Both the key indices hit fresh record highs today, 15 January 2018. Indices trimmed some intraday gains in afternoon trade.

Among the secondary indices, the S&P BSE Mid-Cap index dropped 0.05%. The S&P BSE Small-Cap index advanced 0.33%. Both these indices underperformed the Sensex.

Overseas, most Asian stocks edged higher amid optimism on global growth prospects. US markets will remain shut today, 15 January 2018, for the Martin Luther King Jr. holiday. Better-than-expected quarterly earnings from some financial majors and robust economic data boosted the benchmark US indices to fresh closing highs on Friday, 12 January 2018. Among macro data, US Commerce Department said retail sales increased by 0.4% in December, in-line with estimates.

Back home, the breadth, indicating overall health of the market, was positive. On the BSE, 1,584 shares advanced and 1,260 shares declined. A total of 128 shares were unchanged.

IT stocks declined. HCL Technologies (down 1.51%), Tech Mahindra (down 0.83%) and Wipro (down 0.52%) edged lower. Oracle Financial Services Software (up 0.08%) edged higher.

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IT major Infosys rose 0.26% at Rs 1,081.15 after consolidated net profit rose 37.65% to Rs 5129 crore on 1.29% growth in net sales to Rs 17794 crore in Q3 December 2017 over Q2 September 2017. The result was announced after market hours on Friday, 12 January 2018.

The sharp jump in Infosys' net profit in Q3 December 2017 is mainly on account of the conclusion of an advance pricing agreement (APA) with the US Internal Revenue Service (IRS). This has also led to an increase in basic earnings per share (EPS) by Rs 6.29 for the quarter.

On a consolidated basis, the company expects its revenues for the fiscal year ending 31 March 2018 (FY 18) to grow 5.5%-6.5% in constant currency terms. The guidance in constant currency is unchanged compared with the revenue growth guidance issued by the company at the time of announcing Q2 September 2017 earnings.

The revenue is expected to grow 6.5%-7.5% in dollar terms in FY 18. The guidance in dollar terms is unchanged compared with the revenue growth guidance issued by the company at the time of announcing Q2 September 2017 earnings.

TCS declined 0.33% at Rs 2,763.85. The company announced an expanded strategic technology partnership with Marks and Spencer plc to enable the iconic retailer to become a digital-first business. As part of the retailer's five-year plan to transform its business, the retailer aims to make its technology function deliver more commercial opportunities. The announcement was made during market hours today, 15 January 2018.

Key pharma stocks nudged lower. Divi's Laboratories (down 1.18%), Sun Pharmaceutical Industries (down 0.9%), Aurobindo Pharma (down 0.37%), Cipla (down 0.18%), Dr Reddy's Laboratories (down 0.19%) and Lupin (down 0.01%) declined. Ipca Laboratories (up 1.13%) and Alkem Laboratories (up 0.23%) gained.

L&T was up 0.07% after the company said that its construction division has secured orders worth Rs 1310 crore across various business segments. The announcement was made during market hours today, 15 January 2018.

On the macroeconomic data front, India's industrial production surged at 25-month high pace of 8.4% in November 2017 over November 2016, while showing a sharp acceleration in growth from the 2% increase in October 2017.

India's inflation based on consumer price index (CPI) surged to 17-month high of 5.21% in December 2017 compared with 4.88% in November 2017. The core CPI inflation increased to 4.96% in December 2017 compared with 4.75% in November 2017. The cumulative CPI inflation was lower at 3.25% in April-December FY 2018 compared with 4.85% in April-December FY 2017. Both IIP and CPI data was announced after market hours on Friday, 12 January 2018.

The government today, 15 January 2018 said that India's inflation based on monthly wholesale price index (WPI), eased to 3.58% (provisional) for the month of December 2017 as compared to 3.93% (provisional) for the previous month and 2.1% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 2.21% compared to a build up rate of 3.71% in the corresponding period of the previous year.

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First Published: Jan 15 2018 | 1:13 PM IST

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