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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Indian markets trade flat 
(Thu, 17 Oct 11:30 am) 
 
After opening in the red, the Indian stock markets are trading flat in the morning session. Selling pressure has largely been witnessed in capital goods and IT stocks.

The BSE-Sensex is down 10 points and the NSE-Nifty is trading down 2 points. The BSE Mid Cap index is trading up 0.6% and the BSE Mid Cap index is trading up 0.4%. The Rupee is trading at 61.53 to the US Dollar.

The World Bank in its India Development Update 2013 issued yesterday, has cut down India's GDP growth estimate to 4.7% from the earlier projected 5.7% for FY14. It cited reasons such as macro-economic vulnerability-particularly high inflation, the current account deficit (CAD) and fiscal imbalance for revision in estimates. If the economy indeed grows by 4.7%, it would be the lowest since FY03. As per the bank, the weak performance in the first quarter will be carried forward to the second quarter of this fiscal as well. World Bank's forecast is below the Prime Minister's Economic Advisory Council (PMEAC)'s revised forecast of 5.3% for this fiscal. The finance ministry also expects the economy to grow close to 5.5%. The World Bank predicts CAD to be around 4.1% of the GDP. On the contrary, the government expects CAD to be 3.7% of the GDP this fiscal. On a positive note, the bank expects pickup in investment in the coming months. It also stated that India has a strong potential to grow at 7-8% in the long run.

Most IT stocks are trading lower today. Tech Mahindra and Tata Consultancy Services (TCS) are among the stocks leading the losers. India's largest software firm Tata Consultancy Services (TCS) announced a great second quarter result for FY14. The company's revenues and net profits grew by 16.6% and 21.2% QoQ respectively. The company's operating margin improved to reach an all time high of 30.1% helped by the rupee which declined by nearly 11% in the quarter. The company witnessed broad based growth in all of its verticals and service lines which is a testament to the management's foresight and capabilities. The company said that it is seeing a revival in discretionary spending in the US which will help it bag large deals going forward. The management was confident that it could maintain margins in the range of 26-28% excluding the effect of the rupee, as it did not foresee any pressure on pricing due to competition. TCS is trading down 2.7% today.

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S&P BSE IT


Jul 26, 2017 09:51 AM

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