Key benchmark indices edged higher in early trade tracking positive domestic macro economic data viz. the industrial production and consumer price inflation released after market hours yesterday, 12 January 2017. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 107.94 points or 0.4% at 27,355.10. The Nifty 50 index was up 25.85 points or 0.31% at 8,433.05.
The BSE Mid-Cap index was up 0.25%. The BSE Small-Cap index was up 0.23%. Both these indices underperformed the Sensex.
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, 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.
Closer home, the market breadth, indicating the overall health of the market, was strong. On the BSE, 796 shares rose and 342 shares declined. A total of 56 shares were unchanged.
Software major Infosys rose 2.09% after consolidated net profit rose 2.82% to Rs 3708 crore on 0.21% decline in revenue from operations to Rs 17273 crore in Q3 December 2016 over Q2 September 2016. The results are as per Indian Accounting Standards (Ind AS). The result was announced before market hours today, 13 January 2017.
IT major TCS was down 1.38%. 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.
Bharti Airtel was up 0.06%. Airtel Payments Bank, India's first payments bank, commenced national operations yesterday, 12 January 2017, with services now LIVE in all 29 States of India. Arun Jaitley, Union Minster of Finance and Corporate Affairs, formally launched Airtel Payments Bank's national operations yesterday, 12 January 2017. The announcement was made after market hours yesterday, 12 January 2017.
Airtel Payments Bank, a fully digital and paperless bank, aims to take basic banking services to the doorstep of every Indian by leveraging Airtel's vast retail network. Over 250,000 neighbourhood Airtel retail stores across the country will also function as banking points, and customers will be able to open savings accounts, deposit and withdraw cash across any of these banking points. Airtel Payments Bank will not charge any processing fee from its customers and merchants partners for digital transactions, thereby encouraging them to adopt cashless payments.
Rural Electrification Corporation (REC) was up 1.02% after the company announced the incorporation of three project specific special purpose vehicles (SPVs) as wholly owned subsidiaries of REC Transmission Projects Company (RECTPCL). The announcement was made after market hours yesterday, 12 January 2017.
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