Wipro Q4 Results, Rising Treasury Yield, and Top Cues in Focus Today

Thu, 26 Apr Pre-Open | Monish Vora, TM Team

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Share markets in India closed marginally lower yesterday. Gains were largely seen in the IT sector and telecom sector.

At the closing bell yesterday, the BSE Sensex stood lower by 115 points (down 0.3%) and the NSE Nifty closed down by 44 points (down 0.4%). The BSE Mid Cap index was down 0.5%, while the BSE Small Cap index was down by 0.7%.

Top Stocks in Focus Today

From the telecom sector, Bharti Airtel share price will be in focus today as the company yesterday approved merger of its listed tower arm with privately held Indus Towers Ltd. to create the largest telecom infrastructure company outside China.

From the automobile space, Tata Motors share price will be in focus today as the company's erstwhile partner Volkswagen AG has signaled it isn't shutting the door on a tie-up with the Indian automaker.

From the cement sector, market participants will be tracking UltraTech Cement share price today as the company reported a 29% year-on-year (YoY) fall in its standalone net profits for the March quarter of FY18.

Dr Reddy's share price will also be in focus today as it was yesterday reported that the company has received an establishment inspection report (EIR) from the US health regulator after audit of its UK facility.

Wipro Q4 Results: Net Profit Falls 21% YoY

From the IT sector, Wipro share price will be in focus today as the company yesterday announced its fourth quarter results for the FY18.

The company's consolidated net profit fell 21% YoY during the quarter stood at Rs 18 billion as against Rs 22.6 bn during the corresponding quarter last year.

Revenue from operations for the quarter stood at Rs 137.6 bn against Rs 139.8 bn in the March quarter of FY17.

During the quarter under review, the company signed a definitive agreement to divest its hosted data centre services business to Ensono Holdings and its affiliates Ensano Group. The sale is expected during the quarter ended June 30, 2018.

Yield on 10-Year Treasury Note Climbed to 3%

The yield on the 10-year Treasury note, which helps set rates for auto loans, mortgages and other lending, rose one basis point to 2.99%, after breaking the 3% level for this first time 2014.

For Americans, this means higher borrowing costs. For Wall Street, it's a warning that higher interest rates may eat into corporate profits and that faster inflation is coming. Both of which could eventually hurt the economy.

Apart from this, market participants also worry that the Republican tax cuts for businesses and individuals will cause the economy to grow too quickly.

As per the reports, the Federal Reserve is expected to raise short-term interest rates at least twice more this year and three times in 2019, in an effort to tap the economy's brakes. That will probably lead to even higher rates on longer-term Treasuries.

Also note that the difference in yields between short-term bonds and the 10-year note is narrowing, a phenomenon known as a flattening yield curve.

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