Nifty IT index gains 5% in three days; TCS, Infosys up over 4% in intra-day
Posted on 28th November 2018 |
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Shares of information technology (IT) companies are trading higher for the third straight session, with the Nifty IT index gaining 5% so far during this period on value buying.
Tata Consultancy Services (TCS) and Infosys, from the index, are up 4% each at Rs 1,961 and Rs 663, respectively. NIIT Technologies, Mindtree, Tata Elxsi, Tech Mahindra and HCL Technologies are up in the range of 1% to 3% on the National Stock Exchange (NSE).
At 01:37 pm, Nifty IT index, the largest gainer among sectoral indices, was up 2.5%, as compared to a 0.42% rise in the Nifty 50 index. In the last three days, IT index has surged 5.4% against 2.1% gained in the benchmark index.
In the past two months, Nifty IT index had underperformed the market by falling 15%, due to the strengthening of the rupee against US dollar. In comparison, the Nifty 50 index had declined 5% till Thursday.
In the previous quarter, organic constant currency revenue growth accelerated for the fourth consecutive quarter, on expected lines. Against expectations of a strong Q2FY19, backed by the combination of seasonality and cyclical impetus, there were instances of revenue miss across a few companies outside the large cap IT stocks. The currency's support to margins was reflected in beat at Wipro, Tech Mahindra, KPIT Technologies, NIIT Technologies and Persistent Systems.
“Given the order book across the board, we expects a partial offset to weak Q3 (October-December) seasonality and continued acceleration in revenue growth on an aggregate level. On the other hand, we will keep a close eye on the margins given the appetite for Digital investments and sporadic comments of tight market for local labor in the US,” Motilal Oswal securities said in sector update.
Analysts at Edelweiss Securities believe the rapid adoption of new-age (digital) technologies will be the key growth driver of Indian IT services companies. Digital has gained significant heft (~30% of revenue) without losing its robust growth momentum (>30% YoY).
Also, significant rise in profitability of US companies is driving demand (>65% revenue for Indian IT service companies). Tax Cuts and Jobs Act (TCJA) is expected to cut statutory tax rate from 35% to 21% in the US; this will lead to higher discretionary spends, particularly in BFSI and retail industries, leading to more investment in technology, the brokerage firm said in report ‘India Strategy 2019’. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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