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IT stocks extend recent slide

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Key benchmark indices regained positive zone in early afternoon trade led by gains in index heavyweight and At 12:28 IST, the barometer index, the S&P Sensex, was up 54.24 points or 0.17% at 31,129.97. The 50 index was up 12.75 points or 0.13% at 9,590.80. IT stocks extended recent slide.

Domestic stocks nudged higher in early trade on positive Asian stocks. A bout of volatility was seen in morning trade as the key benchmark indices once again regained strength after trimming early gains. A divergent trend was witnessed among the key indices in mid-morning trade.

The S&P Mid-Cap index was up 0.25%. The S&P Small-Cap index was up 0.41%. Both these indices outperformed the

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,357 shares rose and 1,058 shares fell. A total of 156 shares were unchanged.

IT stocks extended recent slide. Wipro (down 2.07%), HCL Technologies (down 0.92%), Tech Mahindra (down 0.8%), MindTree (down 0.05%) and MphasiS (down 0.24%) declined. Oracle Financial Services Software (up 0.77%) and Hexaware Technologies (up 0.24%) rose.

Infosys fell 0.87%. Infosys announced the appointment of Karmesh Vaswani as the Global Head - Retail, CPG & Logistics (RCL) and Nitesh Banga as the Global Head of Manufacturing, effective 15 July 2017. Karmesh Vaswani and Nitesh Banga are both career Infoscions who have held strategic portfolios across the organization for nearly a decade. The announcement was made after market hours yesterday, 15 June 2017.

TCS fell 0.09%. TCS announced that it has launched ignio for SAP ERP to help customers run their operations in SAP more effectively. ignio is a cognitive automation solution for enterprise IT. ignio has also achieved certified integration with SAP ERP. The announcement was made after market hours yesterday, 15 June 2017.

Telecom stocks saw mixed trend. Idea Cellular (up 0.98%), MTNL (up 0.67%) and Reliance Communications (up 0.26%) rose. Bharti Airtel (down 0.74%) and Tata Teleservices (Maharashtra) (down 0.79%) fell.

Shares of Bharti Infratel rose 1.92%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

Deepak Fertilisers and Petrochemicals Corporation rose 2.56% after the company said the Department of Fertilisers (DoF) will release balance subsidy of Rs 310.52 crore on providing a bank guarantee of an equivalent amount. DoF had withheld the subsidy pending decision on recovery of alleged undue gain on account of supply of 'cheap' gas. The announcement was made after market hours yesterday, 15 June 2017.

Pennar Industries rose 2.13% after the company said that Pennar Engineered Building Systems and the company intend to set up a 50:50 joint venture in United States of America to supply their goods and services. The JV will help both the companies to increase their addressable market and contribute to an increase in revenue and profitability. The announcement was made after market hours yesterday, 15 June 2017.

Century Plyboards (India) rose 1.82% after the company said its Singapore-based subsidiary acquired 49% stake in Huesoulin Wood Processing Factory Company. The announcement was made after market hours yesterday, 15 June 2017.

Century Plyboards (India) said its subsidiary, Century Ply (Singapore), in Singapore has acquired 49% stake in Huesoulin Wood Processing Factory Company, thereby making it an associate company. Huesoulin Wood Processing Factory Company is engaged in manufacturing and trading in plywood, veneer and all wood products and providing related services.

On the macro front, merchandise exports have shown growth of 8.32% in dollar terms valued at $24014.62 million during May 2017 as compared to $22170.62 million during May 2016. Merchandise imports rose 33.09% and were valued at $37856.34 million during May 2017 from $28443.52 million in May 2016. The trade deficit for May 2017 was estimated at $13841.72 million as against the deficit of $6272.90 million during May 2016. The data was released by government after market hours yesterday, 15 June 2017.

Overseas, most Asian stocks were trading higher as a number of technology stocks posted gains. US stocks fell for the fourth time in five days dragged lower by shares including Apple and Alphabet that tumbled on bearish analysts' reports.

The Bank of Japan (BOJ) left policy unchanged today, 16 June 2017, maintaining its aggressive monetary stimulus aimed at lifting inflation, which continues to show weakness despite brighter spots elsewhere in the economy. The BOJ board voted to keep its target for 10-year Japanese government bond yields at around zero and a shorter-term interest rate at minus 0.1%, as widely expected by economists. The bank also reiterated that it would continue to buy government bonds at an annual pace of about 80 trillion ($720 billion).

Meanwhile, Washington remained in focus as the special counsel investigating Russia's interference in the 2016 election was said to be planning to interview two top U.S. intelligence officials about whether President Donald Trump sought their help to get the FBI to back off a related probe of former National Security Adviser Michael Flynn.

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

First Published: Fri, June 16 2017. 12:30 IST