A divergent trend was witnessed as the Sensex provisionally settled with small gains while the Nifty settled marginally lower. The barometer index, the S&P BSE Sensex, rose 26.31 points or 0.07% at 36,265.93, as per the provisional closing data. The Nifty 50 index fell 1.40 points or 0.01% at 10,945.85. Global cues were weak as trade tensions escalated after US planned additional tariffs on Chinese goods.
Intraday volatility was high. The key benchmark indices reversed initial losses triggered by negative Asian stocks. Indices extended gains in morning trade. Fresh selling at higher levels once again pulled the key benchmark indices in negative zone in mid-morning trade. Key benchmark indices once again regained positive zone in early afternoon trade. Indices pared gains and were trading almost flat in afternoon trade. Stocks extended gains and hit fresh intraday high in mid-afternoon trade. Stocks once gain retreated in late trade.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1058 shares rose and 1562 shares fell. A total of 157 shares were unchanged.
IT major TCS gained 4.9% after consolidated net income rose 6.3% to Rs 7340 crore on 6.8% increase in revenue to Rs 34261 crore in Q1 June 2018 over Q4 March 2018. The result was announced after market hours yesterday, 10 July 2018.
Commenting on the Q1 performance, CEO and MD, Rajesh Gopinathan said the company is starting the new fiscal year on a strong note, with the growth engine firing on all cylinders. The firm's banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum. With a good set of wins during the quarter, a robust deal pipeline and accelerating digital demand, TCS is positioned well for the future.
Axis Bank rose 0.82%. Axis Bank said that its board has recommended the names of three candidates, in order of preference, for the approval of the RBI. The candidate as approved by the RBI, will succeed Shikha Sharma, whose term as the managing director & CEO of the bank, is due to expire on 31 December 2018. As mandated under the extant RBI norms, the bank will be submitting its application in respect of the recommendations relating to the said appointment, for the approval of the RBI. The announcement was made after market hours yesterday, 10 July 2018.
Overseas, Asian and European stocks dropped after the Trump administration announced it plans to slap tariffs on a further $200 billion of Chinese imports. US stocks had climbed in the regular trading session yesterday, 10 July 2018, as investors focused on the start of earnings season.
Meanwhile, media reports suggested that President Donald Trump on Wednesday, 11 July 2018, claimed Germany is "totally controlled" by Russia. Speaking in Brussels, Belgium on the first leg of his European trip, the US president reportedly said a slew of "inappropriate" energy deals had given Moscow far too much influence over the continent's largest economy.
The Trump administration pushed ahead with plans to impose tariffs on an additional $200 billion in Chinese goods by releasing a list of targeted products. The 10% tariffs could take effect after public consultations end on August 30. The proposed list of goods includes consumer items such as clothing, television components and refrigerators as well as other technology products, though it omitted some high-profile items like mobile phones.
Earlier, the Trump administration on July 6 imposed 25% duties on $34 billion in Chinese imports. The first round of tariffs covered Chinese products ranging from farming plows to machine tools and communications satellites. China immediately retaliated with duties on the same value of US goods, including soybeans and cars and has promised further retaliation too.
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