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IT stocks buck weak trend

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Key indices were trading close to their intraday lows in afternoon trade. At 13:20 IST, the barometer index, the S&P Sensex, was down 156.54 points or 0.49% at 31,641.30. The 50 index was down 50.95 points or 0.51% at 9,857.10. Weakness in global stocks weighed on the domestic bourses.

Domestic stocks nudged lower in early trade on negative global cues weighed by escalation in tensions between the US and North Korea. Key indices cut losses in mid-morning trade after hovering in negative zone in morning trade. Selling gripped bourses once again later during the session.

The S&P Mid-Cap index was down 1.04%. The S&P Small-Cap index was down 1.15%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were almost three losers against every gainer on 1,749 shares declined and 605 shares rose. A total of 126 shares were unchanged.

Capital goods stocks dropped for the third day in a row. BEML (down 1.55%), Bharat Heavy Electricals (Bhel) (down 0.26%), Havells India (down 2.88%), L&T (down 0.68%), Thermax (down 1.34%), ABB India (down 2.25%) and Siemens (down 2.53%) declined.

IT stocks advanced on weak rupee. Tech Mahindra (up 4.16%), HCL Technologies (up 0.03%), Infosys (up 1.5%), and Wipro (up 0.16%) edged higher. TCS fell 0.39%. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 63.9625, compared with its close of 63.8375 during the previous trading session.

ITD Cementation India rose 4.59% after consolidated net profit rose 119.72% to Rs 20.72 crore on 41.29% decline in net sales to Rs 489.17 crore in Q2 June 2017 over Q2 June 2016. The result was announced after market hours yesterday, 9 August 2017. ITD Cementation India said it had an order book of Rs 8212.10 crore as on 30 June 2017 executable over a period of 30 months.

India Nippon Electricals was locked at 20% upper circuit at Rs 769.25 on after net profit spurted 117.2% to Rs 13.29 crore on 24.9% increase in net sales to Rs 103.87 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 9 August 2017.

Meanwhile, India Meteorological Department (IMD) said that area weighted rainfall for the country as a whole till 9 August 2017 was 3% below the normal rainfall. The quantum of the rainfall and its spatial and temporal distribution are critical for the country's agriculture. Around 70% of the country's farmlands are rain-fed.

Overseas, European stocks dropped in early trade and Asian stocks declined as investors continued to take risks off the table even as American officials tried to ease concerns amid an escalation in tensions between the US and North Korea.

French industrial production fell further than expected in June as manufactured goods output declined, statistics showed. Industrial output in the eurozone's second-largest economy fell 1.1% on the month in June.

US stocks closed lower yesterday, 9 August 2017 as tensions between North Korea and the US added a dollop of geopolitical uncertainty to markets, and as high-profile companies disappointed with their quarterly results.

In the latest escalation of tensions between Washington and Pyongyang, the isolated Asian country threatened a missile strike at US territory Guam. That saber-rattling came a day after US President Donald Trump said he would respond with fire and fury like the world has never seen if the country doesn't halt its threats.

On the Federal Reserve front, Chicago Fed President Charles Evans said he supported starting a reduction of the central bank's $4.5 trillion balance sheet in September but was ambivalent about another rate hike this year.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, August 10 2017. 13:15 IST
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