Sensex hovers near 60,000 mark; TCS drops sharply after results

The benchmark indices hovered near the flat line in early trade. The Nifty traded near the 17,900 mark. The Sensex is hovering near the psychological 60,000 mark. At 9:23 IST, the barometer index, the S&P BSE Sensex, was down 33 points or 0.06% at 60,026. The Nifty 50 index was up 4 points or 0.02% at 17,899.20. Shares of IT major TCS dropped sharply after declaring Q2 result.

In the broader market, the S&P BSE Mid-Cap index rose 0.18% while the S&P BSE Small-Cap index gained 0.56%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 1779 shares rose and 706 shares fell. A total of 122 shares were unchanged.

Stocks in Spotlight:

TCS slumped 6%. The IT company's net profit rose 6.84% to Rs 9,624 crore on a 3.21% increase in net sales to Rs 46,867 crore in Q2 September 2021 (Q2 FY22) over Q1 June 2021 (Q1 FY22). On a year-on-year (YoY) basis, the IT major's net profit rose 28.75% and net sales rose 16.77% in Q2 FY22.

Route Mobile jumped 3.29% after the company's wholly owned subsidiary, Route Mobile (UK) signed definitive agreements to acquire Latin America-based Masivian. Masivian is a cloud communications platform service provider, with strong presence in Colombia and Peru.

Gland Pharma was down 0.18%. The drug company on Friday announced that it received tentative approval from the United States Food and Drug Administration (USFDA) for sugammadex injection.

GOCL Corporation jumped 9.17% after the company said that its wholly-owned subsidiary IDL Explosives (IDLEL) has bagged order from Coal India worth Rs 592.45 crore.

Global Markets:

Asian stocks were mostly trading higher on Monday as stocks in Hong Kong led gains regionally. Mainland Chinese stocks were also higher. Travel stocks in Singapore surged after Singapore authorities announced over the weekend that more vaccinated travel lanes are set to open with 8 more countries. Markets in South Korea are closed on Monday for a holiday.

U.S. stock indexes ended lower Friday with technology stocks under pressure as bond yields rose after a monthly report on the labor market came in much weaker than expected.

The Labor Department's nonfarm payrolls report showed the U.S. economy in September created the fewest jobs in nine months as hiring dropped at schools and some businesses were short of workers. The report said non-farm payroll employment rose by 194,000 jobs in September after climbing by an upwardly revised 366,000 jobs in August.

Despite the much weaker than expected job growth, the unemployment rate fell to 4.8% in September from 5.2% in August.

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