As regards global markets, Asian indices closed on a firm note. European indices have opened on a weak note. The rupee was trading at Rs 61.105 to the dollar at the time of writing.
Barring Tata Consultancy Services (TCS), most of the large technology stocks ended the day on a firm note with HCL Technologies and Tech Mahindra leading the gains. Tech Mahindra has declared its of the financial year 2013-2014 (1QFY14). The company witnessed an 8.9% QoQ growth in its revenues (in rupee terms). In terms of US dollars, the growth was 3.9% QoQ. The company's operating margins improved to 21.1% as compared to the 20.5% in the previous quarter (4QFY13). Net profits grew by 7.6% QoQ during the quarter. Excluding the gain on impairment made during 4QFY13, net profits increased by 36.3% during the quarter. The company's active client base stood at 567 at the end of June 2013 as compared to 516 at the end of March 2013.
Banking stocks ended the day on a weak note with State Bank of India (SBI), HDFC Bank and Axis Bank ending on a weak note. The stock of SBI was the top loser amongst the BSE-Sensex stocks and also hit its 52-week low price today. Weakness in the stock was on the back of the bank announcing a poor set of results. The bank's net interest income grew by a mere 3.5% YoY in 1QFY14 on the back of lower interest income and higher costs. SBI's net interest margins (NIMs) came under pressure falling down to 3.1% from 3.6% earlier. Further, net profits declined by 14% YoY on the back of higher provisioning and higher operating expenses. What has been a key concern amongst investors have been the rising non-performing assets. The same increased to 2.8% in 1QFY14 as against 2.2% in 1QFY13.