Key benchmark indices remained firm and traded with modest gains after hovering within a tight range in the positive terrain in afternoon trade. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 115.58 points or 0.33% at 35,627.16. The Nifty 50 index was up 16.25 points or 0.15% at 10,910.95. Firmness in global stocks supported gains on the bourses.
Trading for the week began on a positive note triggered by firmness in global stocks with Reliance Industries and HDFC Bank leading gains. A bout of volatility was seen in morning trade as the Sensex and the Nifty trimmed gains after scaling fresh record highs. Volatility continued in mid-morning trade as stocks regained strength soon after trimming gains from higher levels. Indices held firm later during the session.
The S&P BSE Mid-Cap index was up 0.15%, underperforming the Sensex. The S&P BSE Small-Cap index was up 0.57%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,503 shares rose and 1,280 shares fell. A total of 146 shares were unchanged.
IT stocks traded mixed. Tech Mahindra (up 1.55%) and TCS (up 2.02%) gained. HCL Technologies dropped 0.88%.
Infosys dropped 0.34%. The company announced a strategic partnership with the A.S. Watson Group (ASW), the world's largest international health and beauty retailer, to accelerate ASW's digital transformation initiatives. Infosys has been appointed as an official technology partner by the A.S. Watson Group to provide technology services across data science and artificial intelligence. This collaboration is part of ASW's Technology Partnership Program, which is aimed at developing strategic partnerships to support the company's long term goals. The announcement was made during market hours today, 22 January 2018.
Wipro lost 1.22% after consolidated net profit fell 11.85% to Rs 1930.10 crore on 1.82% growth in net sales to Rs 13669 crore in Q3 December 2017 over Q2 September 2017. The result was announced after market hours on Friday, 19 January 2018.
Wipro's revenue from IT services in dollar terms in Q3 December 2017 remained flat sequentially and increased by 5.8% YoY. The company expects revenue from IT Services business to be in the range of $2,033 million to $2,073 million for Q4 March 2018.
Abidali Z. Neemuchwala, CEO and member of the board said, the company continued to improve its growth trajectory driven by strong momentum in BFSI and uptick in healthcare. This is also reflected in its outlook for Q4 March 2018. Wipro's leadership in digital continues to strengthen with over 25% of its revenues now coming from digital, Neemuchwala added.
Jatin Dalal, Chief Financial Officer said, the company has made strong progress in its client mining with number of clients contributing revenues over $50 million increasing from 33 to 41 in the last 1 year. In the first 9 months of FY 2018, Wipro generated robust operating cash flows over the same period last year, Dalal added.
Auto stocks were mixed. Mahindra & Mahindra (M&M) (down 0.71%), Ashok Leyland (down 0.7%), Eicher Motors (down 0.67%), and Maruti Suzuki India (down 0.23%) declined. Bajaj Auto (up 1.57%), Hero MotoCorp (up 0.56%), Tata Motors (up 0.74%) and TVS Motor Company (up 0.24%) gained.
The automobile industry has largely sought rationalization of tax slabs and removal or reduction of cess by the Government in Union Budget 2018-19. The government needs to create an effective and tax-friendly framework for smooth implementation of electrification of India's huge transport fleet.
Godawari Power & Ispat was locked at 5% upper circuit at Rs 520.10 after the company reported consolidated net profit of Rs 74.40 crore in Q3 December 2017, compared with net loss of Rs 9.21 crore in Q3 December 2016. The result was announced on Saturday, 20 January 2018. The company's net sales rose 57.6% to Rs 672.08 crore in Q3 December 2017 over Q3 December 2016.
Overseas, most Asian stocks gained as investors kept an eye on political developments in the US after a government shutdown began last week. US stocks on Friday, 19 January 2018 finished higher, with both the S&P 500 and the Nasdaq ending at records as optimism over corporate earnings outweighed the US government shutdown.
Republican and Democratic leaders of the US Senate failed to secure a deal on Sunday night seeking to break the impasse that has kept the US government shut down for two days.
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