The major Asian stock markets have opened the session on a positive note with markets in China (up 5.5%) and Hong Kong (up 2.1%) leading the gains. US and European stock markets have also closed their session on a positive note. The rupee is trading at 63.37 per US dollar.
Stocks in the software space have opened the day on a mixed note. According to financial times, Tata Consultancy Services (TCS) has reported a better than estimated rise in net profit and margin for the quarter ended June. The revenues grew by 16% on a YoY (year-on-year) basis and 6% sequentially. In dollar terms, revenue growth stood at 3.5% on a quarter-on-quarter basis. While the growth was much better than in the past few quarters, it did not meet Street expectations of 4-4.2%. Stock of TCS has opened the day on a negative note.
Stocks in the cement sector are trading mixed. As per a leading financial daily, there has been reported a lack of concrete growth in cement sector. This is inspite of the core statistics for May showing a marginal growth in the cement sector. The sector being barometer of economic activity continues to be under pressure. As per the latest update from the government on growth of core sector for the month of May, the cement production witnessed growth of 2.6% against a contraction of 2.4% in the immediate previous month. While this is seemingly positive development; however it is too little to rejoice since in the growth in corresponding month last year, that is in May 2014, the growth was around 8.4%. While the sector is running at a capacity of 72% with more than a 100 million tonnes of capacity lying unutilized.