Sensex Today Live: Indian markets started the week down as information technology (IT) sectors plunged after unsatisfactory fourth-quarter earnings from Infosys and Tata Consultancy Services.
IT Companies Today
IT companies; Infosys and Tech Mahindra were the leading losers from the Sensex pack, losing 7-11%. Along with NTPC, Wipro, HCL Tech, TCS, HDFC Bank, and HDFC opened in the red. Power Grid, Nestle, IndusInd Bank, Axis Bank, UltraTech Cement, and Tata Steel, on the other hand, all saw increases in trading.
Due to gloomy fourth-quarter reports from the top two IT companies and increasing prospects of a US Federal Reserve rate rise in May, Indian market indexes began on a negative note on Monday.
Early trading saw a 6%+ decline in the Nifty IT index.
As of 9.30 am, the S&P BSE Sensex was down 778 points, or 1.29%, to 59,666, while the Nifty 50 index down 191 points, or 1.08%, to 17,636.
IT Companies Status
IT companies; Infosys and Tech Mahindra were the leading losers from the Sensex pack, losing 7-11%. Along with NTPC, Wipro, HCL Tech, TCS, HDFC Bank, and HDFC opened in the red.
Power Grid, Nestle, IndusInd Bank, Axis Bank, UltraTech Cement, and Tata Steel, on the other hand, all saw increases in trading.
Ahead of today’s Q4 results, shares of Angel One, Just Dial, and TV 18 Broadcast rose by over 2%.
IT Companies Analysis
The Nifty IT companies; Index fell 6.71 percent, while the Nifty Financial Services Index fell 0.28 percent. Opening reductions were also seen in the media, metal, healthcare, consumer durables, and oil & gas industries. The larger market indexes, the Nifty Smallcap50 and Nifty Midcap50, also fell.
The recent upswing has been fueled by purchasing by FPIs and short covering. The structure of global markets has been beneficial as well. According to V K Vijayakumar, chief investment strategist at Geojit Financial Services, “this positive market construct is likely to change to a slightly negative construct in the near term, driven by the correction in IT stocks.”
With barely 4-7% revenue growth for FY24, Infosys’ disappointing Q4 earnings would have a negative effect on IT equities and the Nifty. Vijayakumar further predicted that “sector rotation from IT to performing sectors like capital goods, pharma, and financials would gain traction.”
Stocks on Wall Street fell on Friday after weak US retail sales data overshadowed a boost from better-than-expected bank results. The Dow Jones Industrial Average finished 0.4% down at 33,886. The broad S&P 500 fell 0.2% to 4,137, while the tech-heavy Nasdaq Composite Index fell 0.4% to 12,123.
Effect of International Markets on IT Companies
Stocks on Wall Street fell on Friday after weak US retail sales data overshadowed a boost from better-than-expected bank results. The Dow Jones Industrial Average finished 0.4% down at 33,886. The broad S&P 500 fell 0.2% to 4,137, while the tech-heavy Nasdaq Composite Index fell 0.4% to 12,123.
On Monday, Asian equities traded gingerly as the US earnings season kicked off, while a slew of Chinese data will provide insight into how the world’s second-largest economy is rebounding.
Chinese blue chips rose 0.7% ahead of Tuesday’s retail sales, industrial production, and GDP figures. The EUROSTOXX 50 futures rose 0.3%, while the FTSE futures rose 0.2%.
The price of crude oil is rising
Brent oil was trading over $86 a barrel on Tuesday, as investors hoped for a resurgence in Chinese demand ahead of key macroeconomic data. Since OPEC+’s unexpected production reduction announcement earlier this month, oil has remained over $80 per barrel.
The price of benchmark US crude gained 7 cents to $82.59 per barrel. Brent crude, the worldwide benchmark, increased 9 cents to $86.40 a barrel.
Rupee Declines
In early trading, the Indian rupee slid 5 paise to $81.90 versus the US dollar. The dollar index, which measures the performance of the US currency against a basket of six major international currencies, increased 0.16% to 101.71.
What are the top ten IT Service Provider firms with Market Capitalization in Apr 2023?
Ans. 1. TCS – 1146783.31 CR
2. INFOSYS – 514849.60 CR
3. HCL TECHNOLOGY – 282519.65 CR
4. WIPRO – 197018.48 CR
5. LTI MINDTREE – 126646.80 CR
6. TECH MAHINDRA – 100317.69 CR
7. TATA ELXSI – 38799.83 CR
8. L&T TECHNOLOGY – 35321.68 CR
9. MPHASIS – 32225.28 CR
10 PERSISTENT SYS – 31824.12 CR
Open Your Demat Account with Discount Brokers:
ZERODHA : https://zerodha.com/open-account?c=EJ4366
or with Angelone: https://tinyurl.com/2gloc3g6