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IT stocks drag markets to end lower

Infosys shares declined 2.5 per cent on profit-taking

Reuters & BS Reporter  |  Mumbai 

Market, NSE, BSE, Sensex, Nifty
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Indian shares edged down on Friday as market heavyweight Tata Consultancy Services (TCS) slumped on worries about its future following key management changes.

Shares of the IT outsourcing giant fell about four per cent to a one-month low as Chief Executive Officer Natarajan Chandrasekaran’s departure to head holding company Tata Sons as chairman overshadowed the company’s better-than-expected December-quarter results.

Adding to the fall, shares declined 2.5 per cent on profit-taking after the company posted positive quarterly results, but narrowed its full-year revenue guidance range.

fell as much as four per cent intra-day to its lowest since December 7, coming off a two-and-a-half-month high touched earlier in the session.

“Market was overheated ahead of TCS and reporting their results,” said RK Gupta, managing director, Taurus Asset Management Company. “We can also see a bit of profit-booking as well as caution ahead of Donald Trump taking over the US presidency.”

The broader Nifty ended 0.1 per cent down at 8,400, while the benchmark fell 0.03 to close at at 27,238.

Both indexes, however, posted their third straight weekly gain, adding nearly two per cent during the week. Both indices had hit their highest levels in around two months on Wednesday.

The IT index fell nearly two per cent. The index has been flat this year on fears of tougher US visa rules after Donald Trump becomes the president on January 20.

Banking stocks extended their rally as they are flushed with deposits after India late last year banned higher-value banknotes. The Nifty Bank Index has rallied four per cent so far in 2017. Shares of Axis Bank gained 3.9 per cent and mortgage firm HDFC added two per cent.

Energy stocks rose as crude oil edged up, supported by reports on details about Opec output cuts. Reliance Industries gained 0.65 per cent ahead of its quarterly results on Monday, while Oil and Natural Gas Corp added 0.9 per cent.

Credit Suisse in a note said policy risks and uncertainty would put pressure on Indian market in the near term. Goods and Services Tax (GST) and demonetisation are disruptive in the short run, it said.

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IT stocks drag markets to end lower

Infosys shares declined 2.5 per cent on profit-taking

Infosys shares declined 2.5 per cent on profit-taking
Indian shares edged down on Friday as market heavyweight Tata Consultancy Services (TCS) slumped on worries about its future following key management changes.

Shares of the IT outsourcing giant fell about four per cent to a one-month low as Chief Executive Officer Natarajan Chandrasekaran’s departure to head holding company Tata Sons as chairman overshadowed the company’s better-than-expected December-quarter results.

Adding to the fall, shares declined 2.5 per cent on profit-taking after the company posted positive quarterly results, but narrowed its full-year revenue guidance range.

fell as much as four per cent intra-day to its lowest since December 7, coming off a two-and-a-half-month high touched earlier in the session.

“Market was overheated ahead of TCS and reporting their results,” said RK Gupta, managing director, Taurus Asset Management Company. “We can also see a bit of profit-booking as well as caution ahead of Donald Trump taking over the US presidency.”

The broader Nifty ended 0.1 per cent down at 8,400, while the benchmark fell 0.03 to close at at 27,238.

Both indexes, however, posted their third straight weekly gain, adding nearly two per cent during the week. Both indices had hit their highest levels in around two months on Wednesday.

The IT index fell nearly two per cent. The index has been flat this year on fears of tougher US visa rules after Donald Trump becomes the president on January 20.

Banking stocks extended their rally as they are flushed with deposits after India late last year banned higher-value banknotes. The Nifty Bank Index has rallied four per cent so far in 2017. Shares of Axis Bank gained 3.9 per cent and mortgage firm HDFC added two per cent.

Energy stocks rose as crude oil edged up, supported by reports on details about Opec output cuts. Reliance Industries gained 0.65 per cent ahead of its quarterly results on Monday, while Oil and Natural Gas Corp added 0.9 per cent.

Credit Suisse in a note said policy risks and uncertainty would put pressure on Indian market in the near term. Goods and Services Tax (GST) and demonetisation are disruptive in the short run, it said.

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Business Standard
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IT stocks drag markets to end lower

Infosys shares declined 2.5 per cent on profit-taking

Indian shares edged down on Friday as market heavyweight Tata Consultancy Services (TCS) slumped on worries about its future following key management changes.

Shares of the IT outsourcing giant fell about four per cent to a one-month low as Chief Executive Officer Natarajan Chandrasekaran’s departure to head holding company Tata Sons as chairman overshadowed the company’s better-than-expected December-quarter results.

Adding to the fall, shares declined 2.5 per cent on profit-taking after the company posted positive quarterly results, but narrowed its full-year revenue guidance range.

fell as much as four per cent intra-day to its lowest since December 7, coming off a two-and-a-half-month high touched earlier in the session.

“Market was overheated ahead of TCS and reporting their results,” said RK Gupta, managing director, Taurus Asset Management Company. “We can also see a bit of profit-booking as well as caution ahead of Donald Trump taking over the US presidency.”

The broader Nifty ended 0.1 per cent down at 8,400, while the benchmark fell 0.03 to close at at 27,238.

Both indexes, however, posted their third straight weekly gain, adding nearly two per cent during the week. Both indices had hit their highest levels in around two months on Wednesday.

The IT index fell nearly two per cent. The index has been flat this year on fears of tougher US visa rules after Donald Trump becomes the president on January 20.

Banking stocks extended their rally as they are flushed with deposits after India late last year banned higher-value banknotes. The Nifty Bank Index has rallied four per cent so far in 2017. Shares of Axis Bank gained 3.9 per cent and mortgage firm HDFC added two per cent.

Energy stocks rose as crude oil edged up, supported by reports on details about Opec output cuts. Reliance Industries gained 0.65 per cent ahead of its quarterly results on Monday, while Oil and Natural Gas Corp added 0.9 per cent.

Credit Suisse in a note said policy risks and uncertainty would put pressure on Indian market in the near term. Goods and Services Tax (GST) and demonetisation are disruptive in the short run, it said.

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Business Standard
177 22