Key benchmark indices provisionally closed the session almost flat in a lacklustre trading. The barometer index, the S&P BSE Sensex, fell 2.42 points or 0.01% at 27,244.74, as per the provisional closing data. The Nifty 50 index lost 8.10 points or 0.1% at 8,399.10, as per the provisional closing data.
The two key indices hovered for a while in positive terrain in early trade amid initial volatility in the wake of positive industrial production data and consumer price inflation data released after the closing hours of market yesterday, 12 January 2017. The indices, however, slipped into the negative zone in morning trade and later hovered in a range-bound fashion just below the neutral line for the remainder of the session. Mixed global cues added to the market gloom. Overseas, European indices edged higher even as Asian equities exhibited a mixed trend amid modest losses on the Wall Street overnight.
The Sensex lost 104.09 points or 0.38% at the day's low of 27,143.07 in morning trade, its lowest level since 11 January 2017. It rose 212.59 points or 0.78% at the day's high of 27,459.75 in early trade, its highest level since 10 November 2016. The Nifty lost 34.05 points or 0.4% at the day's low of 8,373.15 in mid-afternoon trade, its lowest level since 11 January 2017. It rose 53.85 points or 0.64% at the day's high of 8,461.05 in early trade, its highest level since 10 November 2016.
The BSE Mid-Cap index provisionally lost 0.09%. The BSE Small-Cap index provisionally fell 0.03%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,493 shares declined and 1,236 shares rose. A total of 177 shares were unchanged.
The total turnover on BSE amounted to Rs 2966.70 crore, lower than turnover of Rs 3166.79 crore registered during the previous trading session.
More From This Section
IT stocks were mostly higher. However, key stocks TCS and Infosys declined after these companies reported Q3 earnings. Tech Mahindra (up 1.26%), Oracle Financial Services Software (up 1.33%), HCL Technologies (up 0.15%), Wipro (up 0.07%) and Persistent Systems (up 0.24%) edged higher.
IT major TCS was down 3.81%. The company's consolidated net profit rose 2.9% to Rs 6778 crore on 1.5% increase in revenue to Rs 29735 crore in Q3 December 2016 over Q2 September 2016. The result was announced after market hours yesterday, 12 January 2017. The results are as per International Financial Reporting Standards (IFRS).
The company's consolidated revenue in constant currency grew 2% in Q3 December 2016 over Q2 September 2016.
Commenting on the Q3 performance, CEO and MD, N Chandrasekaran said that the resilience of the company's business model and strength of its operating strategy has been brought to the fore by its performance in Q3, traditionally a quarter of weak demand. TCS' strengths in digital, platforms and cloud as well as its deep knowledge of the customers' domain are driving its ability to play a strategic role and make a holistic impact on the business.
Chandrasekaran added that to support and sustain the company's digital business that is growing at 30% on an annual basis, it continues to build new capabilities in digital technologies, empower employees to enhance agility in the workplace and invest more to develop IP-based platforms and products. Some of these products and platforms are maturing with greater customer adoption while others continue to be incubated in its In novation labs. As digital adoption increases in 2017, TCS is well prepared to lead this change.
Rajesh Gopinathan, Chief Financial Officer, said that TCS has shown great discipline and control at all levels to deliver another credible quarter. Alongside a good growth performance, the company has been able to keep profitability stable in the desired range and deliver over $1 billion in free cash flow during the quarter.
Meanwhile, TCS after market hours yesterday, 12 January 2017 announced that Rajesh Gopinathan has been appointed as Chief Executive Officer (CEO) and Managing Director of the company. Gopinathan takes over from N Chandrasekaran who has been appointed as the Chairman of Tata Sons, effective 21 February 2017.
Software major Infosys declined 2.74% after the company lowered the upper band for revenue growth guidance in constant currency terms for the current financial year (FY 2017). In constant currency terms, the company now expects revenue to grow by 8.4% to 8.8% for FY 2017. The company had forecast 8%-9% growth in revenue for FY 2017 in constant currency terms at the time of announcing Q2 September 2016 results. The company had at the beginning of FY 2017 estimated its revenue growth at 11.5-13.5%.
Infosys' consolidated net profit rose 2.8% to Rs 3708 crore on 0.2% decline in revenue to Rs 17273 crore in Q3 December 2016 over Q2 September 2016. The result was announced before market hours today, 13 January 2017. The results are as per International Financial Reporting Standards (IFRS).
The company's consolidated revenue in constant currency terms declined 0.3% in Q3 December 2016 over Q2 September 2016.
Commenting on the results, Infosys' CEO and MD Vishal Sikka said that taking into account seasonal and other additional headwinds in Q3 December 2016, the company's Q3 revenue performance was broadly in line with its expectations. Beyond the quarterly numbers, the company continues to focus sharply on the execution of its strategy, as reflected in the growing embrace of AI-based automation, growth in its new software-led business, delivering innovation, both incremental & breakthrough and fostering a learning-led culture, Sikka said.
On the macro front, India's industrial production surged at 13-months high pace of 5.7% in November 2016 over November 2015, snapping 1.8% fall recorded in October 2016. The manufacturing sector's production jumped 5.5%, while mining output rebounded 3.9% after three months of decline, contributing to the increase in industrial production. The data was released by the government after market hours yesterday, 12 January 2017.
Meanwhile, the all-India monthly inflation based on the consumer price index (CPI) dipped to 25-months low of 3.41% in December 2016, compared with 3.63% in November 2016. The data was released by the government after market hours yesterday, 12 January 2017.
Overseas, European stocks edged higher with health care stocks recovering from remarks made earlier this week by US President-elect Donald Trump that pharmaceuticals were "getting away with murder. Asian equities were mixed. Major US stock indices registered modest losses yesterday, 12 January 2017, after President-elect Donald Trump disappointed investors during his first news conference since July, while Wall Street geared up for the start of earnings season.
Powered by Capital Market - Live News