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After a rangebound trading session, markets gained momentum in the late trades on improved prospects for a deal to keep Greece in the currency area at a weekend summit of European leaders. A firm rally in the Capital Goods shares on expectations of higher industrial growth in May lifted the sentiments.
Provisionally, the Sensex gained 70 points to end at 27,644 levels and the Nifty climbed 28 points to end at 8,357 mark.
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(updated at 2:45 PM)Markets continue to trade in a tight range as investors remain cautious ahead of May industrial output data due to be released today. Weakness in TCS shares after posting a meager 2.1% growth in its June quarter net profit coupled with loss in the FMCG on slowdown of monsoon have capped the upside gains.
At 2:45PM, the Sensex is flat at 27,573 and the Nifty is flat at 8,352. In the broader market, the BSE Mid-cap and Small-cap indices are up 0.2% each. Markert breadth was positive with 1,410 gainers and 1,136 losers on the BSE.
Indian rupee trimmed its initial gains to trade flat at 63.39 against the dollar on bouts of dollar selling from banks and exporters.
TCS Q1 RESULTS
TCS was down nearly 2%. The IT major reported a net profit of Rs 5,708.9 crore, up 12.8% from Rs 5,057.8 crore in the first quarter of FY15. The stock is has slipped by 0.6%.
At Rs 25,668 crore, revenue was up 16.1% on a year-on-year basis and six per cent sequentially. But revenue growth in dollar terms was below the Street’s estimates.
According to Reliance Securities, “TCS’ revenue was a slight-miss on vertical-specific count while profitability was tad-better on efficiencies and strong performance in core geo. We believe that strong digital adoption (digital revenue at 12.5% of 1Q revenue and growth at double-digit on sequential basis) and large transformational infrastructure deals (improvement in client metrics and infrastructure services) will drive growth ahead mitigating headwinds in energy/insurance/telecom; maintain BUY with Target Price of Rs 3,030.”
STOCK TRENDS
On the sectoral front, BSE FMCG, Auto, IT indices are trading lower up to 1.2%. However, BSE Capital Goods, Healthcare and Metal indices are trading higher up to 1%.
Capital Goods shares are among the top gainers on expectations of higher industrial growth in May, the data for which is expected later today. L&T is up 1% while BHEL gained 1.7% after the state-owned company said it has successfully commissioned the second 500 megawatts (MW) unit at Tuticorin Thermal Power Station (TPS).
Shares of telecom companies are trading lower after the govt ordered special audit of mobile networks to check call drops, according to media reports. Bharti Airtel falls 3%, Idea Cellular is down 3% while Reliance Communications is trading flat.
Bank shares are showing an uptrend as investors bought the shares at attractive valuations.HDFC Bank, ICICI Bank, Axis Bank and SBI are up 0.5-1.5% each.
IT shares were trading mixed with Infosys and Wipro up 0.6-1% each while TCS was down post its first quarter earnings. Wipro is set to acquire Designit, a Denmark-based global strategic design firm, for Euro 85 million (Rs 595 crore, or $94 million).
Maruti pared early gains and is trading flat. The passenger car major announced that its Celerio model that was launched in 2014 has sold over 1,00,000 units.
FMCG majors lost ground on concerns that an uptick in inflation amid fears of poor monsoon and unfavorable business environment in the rural markets hurt the sentiments. HUL is down 2.6% while ITC lost 0.6%.
Emami, GlaxoSmithKline Consumer Healthcare, Colgate Palmolive (India) and Dabur India are down between 1% -5%.
Emami, GlaxoSmithKline Consumer Healthcare, Colgate Palmolive (India) and Dabur India are down between 1% -5%.
The market breadth is slightly positive with 1,389 advances versus 1,309 declines on the BSE.
