 "Consumer Durables shine in a lacklustre market")
Markets continued their loosing streak with IT shares dropping the most after TCS’ Q2 results failed to impress the investors. Meanwhile, a fall in the WPI numbers for the eleven straight months coupled with strength in financials capped the downside.
Meanwhile, global stocks lost sheen for the second straight session on new signs of economic slowdown in China amid slump in the commodity prices which further dampened the sentiments.
Provisionally, the Sensex dropped 69 points to end at 26,777 and the Nifty lost 23 points to close at 8,108.
___________________(updated at 3:30 PM)
Markets continue to trade in the same region with IT shares dropping the most after TCS’ Q2 results failed to impress the investors. Meanwhile, a fall in the WPI numbers for the eleven straight months coupled with strength in financials capped the downside.
Meanwhile, global stocks lost sheen for the second straight session on new signs of economic slowdown in China amid slump in the commodity prices which further dampened the sentiments.
At 2:50 PM, the Sensex was down 10 points at 26,837 and the Nifty was down 8 points at 8,124. The broader market was mixed with BSE Midcap index down 0.2% and SmallCap index up 0.5%. Market breadth on the BSE continued to remain positive with 1,512 gainers and 1,152 losers.
TCS Q2 RESULTS
IT giant TCS lost 4% after the company reported a revenue of Rs 27,165 crore for the quarter ended September 2015 as against a consensus Bloomberg estimate of 27,229 crore. By comparison, the CNX Nifty was trading 0.1% lower at 8,122 levels.
In US dollar terms, TCS's clocked a revenue of $4,156 million, a growth of 3% on q-o-q basis, but was lower than the Street's estimate of around 4% growth. This marks the fifth quarter in a row where TCS has missed revenue growth expectations.
WPI
General wholesale prices fell for the 11th month in a row in September, but the decline decelerated to 4.54 per cent against 4.95 per cent in August. However, onions and pulses continued to witness increased price pressures, official data released on Wednesday showed.
KEY STOCKS
On the sectoral front, BSE IT, Auto, Teck and Capital Goods indices are trading lower between 0.2-1%. However, BSE Consumer Durables, Metal and Healthcare indices have gained between 0.2-2%.
Consumer durable stocks are rising on buying interest after the recent industrial output data indicated strong growth in the sector. TTK Prestige,, PC Jewellers, Symphony, Blue Star are up between 1.5-12%.
Tata Motors has lost 1.5% as China witnesses fresh signs of economic slowdown.
FMCG major HUL has shed 2% after the Q2 resullts came below the street expectations.
Financials have gained ground in a rangebound market with HDFC twins, Axis Bnak and SBI gaining between 0.2-1%.
Lupin has gained nearly 2% after the drug maker entered into a joint strategic alliance with German pharma firm Boehringer Ingelheim for co-marketing linagliptin, a novel dipeptidylpeptidase-4 (DPP-4) inhibitor in India.
Cipla is trading with marginal losses after the investors referred to a letter, namely 'form 483', that the US Food and Drug Administration (USFDA) sent to US firm InvaGen Pharmaceuticals in May focusing on quality control issues in one of its manufacturing plants.
Sun Pharmaceuticalgained 0.2% after Taro Pharmaceuticals, the US subsidiary Sun Pharmaceuticals acquired Canada's Zalicus Pharmaceuticals, a company engaged in the development of a pain management drug.
Maruti Suzuki lost 0.5%. The passenger car major is eyeing leadership in the premium hatchback segment with the upcoming model Baleno slated to be introduced later this month.
Infosys shares have rebounded in today’s trade after slipping for two straight days after the management revised its FY16 US$ revenue growth guidance down to 6.4-8.4% year-on-year (YoY) from 7.2-9.2% earlier, while keeping its constant currency guidance unchanged at 10-12% YoY
