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Sensex, Nifty50 flat; TCS, IndusInd Bank edge up ahead of Q3 results

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NEW DELHI: Benchmark indices on Thursday opened on a flat note as investors turned cautious ahead of the kick start earnings season, with two major Nifty50 constituents, IndusInd Bank and TCS scheduled to announce their quarter earnings later in the day. Global cues were mixed, with US stocks settling with minor losses and Asian shares trading sideways.

Investors were also wary of a 7-member panel recommendation to Prime Minister Modi on re-imposition of the long-term capital gains tax on listed securities.

At 9.23 am, the BSE Sensex was trading 14.70 points, or 0.04 per cent, higher at 34,447.77. NSE barometer Nifty50 was ruling at 10,629.70, down 2.50 points, or 0.02 per cent.
"We are now revising the range from 9,500-10,500 to be between 10,000 and 11,000 for the next three months. The domestic investor appetite continue to remain buoyant, especially since the demonetisation. The 10-year bond yields have moved up 123 bps in the last 13 months, yet we have not seen any significant increase in lending rates, especially mortgage loans," Prabhudas Lilladher said in a note.

Infosys gained 1.11 per cent to Rs 1063.25. The IT major will report its third quarter numbers on Friday. Tata Motors, ONGC and ITC added 0.65 per cent, 0.58 per cent and 0.52 per cent, respectively.
TCS shares were trading flat. The company is likely to report a tepid 0.7-1.1 per cent dollar revenue growth for December quarter, while it is expected to post 20-30 basis points QoQ decline in margins later in the day, thanks to seasonal softness on lesser billing days and persistent weakness in select verticals. Brokerage Nomura India noted that while the company has been cautious on BFSI space, it has been suggesting an improvement in retail vertical and is confident on other verticals.

Shares of IndusInd bank too were trading flat. Brokerage firm Reliance Securities believes that IndusInd Bank may report net profit of Rs 936.20 crore for the quarter under review, up 24.70 per cent, against Rs 750.60 crore in the corresponding quarter last year. Operating profit and net interest income may rise of 20.90 per cent and 25.30 per cent, respectively, on a year-on-year basis.

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