Key benchmark indices trimmed intraday gains and entered into negative zone in morning trade. At 10:17 IST, the barometer index, the S&P BSE Sensex, was down 73.41 points or 0.27% at 27,173.75. The Nifty 50 index was down 20.80 points or 0.25% at 8,386.40.
The Sensex lost 81.79 points or 0.3% at the day's low of 27,165.37 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 27.45 points or 0.32% at the day's low of 8,379.75 in morning trade. 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 was down 0.28%. The BSE Small-Cap index was down 0.34%. The losses for both these indices were higher than the Sensex's decline in percentage terms.
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, turned negative from positive in morning trade. On the BSE, 1,124 shares declined and 861 shares rose. A total of 100 shares were unchanged.
Shares of Tata Group companies were mixed after Natarajan Chandrasekaran was appointed as the new chairman of Tata Sons from 21 February 2017. Tata Motors (down 1.21%), Tata Steel (down 0.73%), Titan Company (down 0.43%) and Tata Communications (down 0.14%) edged lower. Tata Global Beverages (up 2.04%), Trent (up 0.89%) and Tata Chemicals (up 0.02%) edged higher.
Chandrasekaran is currently the MD and CEO of TCS. Earlier Tata Sons, the holding company of the Tata Group, had in October 2016 replaced Cyrus P. Mistry as chairman of Tata Sons.
IT major TCS was down 2.69%. 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 was down 0.5%. The company's 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.
Infosys revised revenue growth guidance for the current financial year. In constant currency terms, the company now expects revenue to grow by 8.4% to 8.8% for the year ending 31 March 2017 (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%.
Shares of other IT companies were mixed. Tech Mahindra (up 1.18%), Oracle Financial Services Software (up 1.11%) and Wipro (up 0.22%) edged higher. Persistent Systems (down 0.46%) and HCL Technologies (down 0.18%) edged lower.
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.
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