September quarter earnings and global cues will be the top factors guiding the markets today.
Industry leader Tata Consultancy Services (TCS) yesterday reported weaker than expected numbers in the September quarter, indicating that double-digit growth may elude the Mumbai-based IT services company in FY20. This is despite record deal closures in several quarters. In Q2, TCS posted a net profit of Rs 8,042 crore, a 1.8 per cent rise over the corresponding period of the previous financial year while net profit declined by 1 per cent in sequential terms.
About eight companies, including Infosys, are scheduled to release their September quarter earnings.
Analaysts expect Infosys to further upgrade its revenue guidance for the current financial year when it reports its September quarter results later today. They said the Bengaluru-headquartered IT company remains on a firm footing given the recent deal momentum, strong positioning in clients and favourable arithmetic. You can read the full preview on what to expect from the results on our website.
That apart, investors will also track industrial production data for the month of August slated to be released today after market hours.
Globally, the hope that the US-China trade talks would yield at least a partial deal might boost investors' risk appetite. Top US and Chinese negotiators met on Thursday for the first time since late July to try to find a way out of a 15-month trade war.
Besides, stock-specific developments, oil price movement, the value of rupee against the dollar and foreign fund flow will steer the market.
On Thursday, the S&P BSE Sensex corrected by 298 points or 0.8 per cent to close at 37,880 levels, while the broader Nifty50 index settled at 11,235-mark,down 79 points or 0.7 per cent. The rupee ended flat at 71.06 per US dollar.
On the global front, Asian shares were up in early trade on Friday. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 per cent. Australian shares climbed 0.8 per cent, while Japan's Nikkei stock index gained 0.9 per cent.
U.S. stocks rose during the overnight trade on Thursday on US-China trade deal optimism. The Dow Jones Industrial Average gained 0.57 per cent, the S&P 500 rose 0.64 per cent, and the Nasdaq Composite added 0.6 per cent.
Early trend on SGX Nifty is also indicating a flat to positive start to the day for domestic indices.
In the commodities market, Oil prices rose on Thursday. Global benchmark Brent crude futures settled up 78 cents at $59.10 a barrel.
Top headlines for the day --
>> IRCTC may not boost IPO market amid turmoil in financial sector. According to the industry experts, a pick-up in the activity could be seen only in the first half of the coming year.
>> India pursues China-led trade deal despite domestic opposition. Domestic producers' concerns that repercussions might flood Indian market with cheap Chinese imports.
>> Revenue crunch prompts govt to consider GST rate hike on products that fall in the slab of 0 and 5%
>> Ranbaxy ex-promoters Malvinder, Shivinder Singh arrested in Rs 740-cr fraud case
>> Gem and jewellery export dips almost 8 per cent to Rs 1.3 trillion in first half. Experts says, the industry failed to gain from the US-China trade war.