Nifty hovers near 7,750; TCS, HCL Tech plunge over 7%

Sensex is down 19 points at 25,797 while Nifty is flat.

Benchmark share indices were trading flat with negative bias as gains in financials and FMCG major ITC failed to offset sharp losses in TCS and HCL Technologies after they reported lower-than-expected revenue for the quarter ended September 30, 2014.

At 10.40 AM Sensex is down 19 points at 25,797 while Nifty is trading flat with negative bias.     

In the broader market both BSE Mid cap and Small Cap indices are trading with losses of 0.1-0.4% each.

Market breadth is negative with 1065 declines against 971 advances.

The rupee is trading at 61.70 against US Dollar. Its previous close was 61.83 and it has gained on the back of stronger Asian currencies.

The gloom hanging upon the Asian markets was partially lifted as he number of Americans filing new claims for jobless benefits fell to a 14-year low last week and industrial output rose sharply in September after a fall in the previous month. After rising 0.3% from a four and a half month low Nikkei index pared gains and is trading with a loss of 0.6%. Hang Seng is up 0.1% while Straits Times is flat though Shanghai Composite is down 1%

Sector and Stocks

BSE Bankex, Capital Goods and FMCG indices are the biggest gainers with advances of around 1% while BSE IT index has lost more than 3%. Other losing sectors are Metal and Realty, down 0.6-0.7% each.

Among Sensex heavyweights, ITC, ICICI, L&T and HDFC Group shares have gained around 1% each.

Axis Bank is gaining around 1% ahead of its Q2 results.

BHEL is up around 3%. Earlier the company announced that it has operationalised a 600 MW thermal unit in Madhya Pradesh.

SBI, Sun Pharma, Bajaj Auto and Dr Reddys Lab are other major gainers with advances more than 1%.

Shares of Tata Consultancy Services dropped nearly 7% to Rs 2,493 after the IT major reported nearly 6% drop in net profit at Rs 5,244 crore for the second quarter ended September 2014 compared with Rs 5,568 crore in the first quarter ended June 2014.

Shares of HCL Tech were down nearly 7% at Rs 1,546 after the IT major announced lower than expected revenue at Rs 8,735 crore for the first quarter ended September 2014, up 3.7% compared with previous quarter ended June 2014.HCL Tech follows a July-June accounting year.HCL Tech also declared a dividend of Rs 6/share.

Among other shares, Crompton Greaves has declined around 1% following the relaease of its Q2 results. Though the company has reported a 19% increase in consolidated net profit compared to last year's second quarter at Rs 69.59 crore, it is below analysts' projection of Rs 79.03 crore.

DCB Bank, formerly known as Development Credit Bank, has gained around 1% on reports that  it has raised about Rs 250 crore through a qualified institutional placement to fund its growth plans