Indian markets flat, TCS drags IT stocks down

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    (Nvonews.com)

     

    Indian markets opened flat today and the Sensex hovered around the last closing figure, the little movements that the stocks saw being provided by RIL. Third quarter numbers of TCS disappointed markets, leading to a fall in the IT index. The company’s figures met market expectations, but since the stock did not outperform, TCS shares fell 3%, Infosys fell 1.8% and Wipro was down 2.5%.

    RIL rose 4% on rumors that the company was planning a buyback. The Sensex had opened 40 points above yesterday’s close supported by heavy buying activity in Reliance. However, the markets soon fell as TCS numbers dampened markets. The Sensex was up 11.5 points at 16,477.50 while the Nifty fell 3.65 points to 4,963.65.

    Bharti Airtel, HDFC Bank, HDFC, Maruti and Coal India rose about 1.5%, while L&T, BHEL and NTPC gained 0.6%. Power companies were trading up ahead of meeting with the Prime Minister in which the CEO’s of various companies will discuss supply bottlenecks. Tata Power gained 4%.

    Essar oil was the biggest loser today, falling 20% after Supreme Court verdict that the company would have to pay Rs 9000 crore in taxes to Gujarat.

    Broader markets were also subdued. The BSE 500 index was ruling 0.19 percent lower from its previous close. The BSE midcap index fell 0.33 percent and the BSE smallcap index slipped 0.16 percent.

    The market breadth was negative with 1,104 stocks advancing, compared to 1,316 on the decline. Another 105 remained unchanged.

    Asian markets were ruling mixed as investors grew cautious after overnight results from some US Banks showed weak quarterly earnings. But there was some good news as well with recent successful bond auctions conducted by Spain and Greece.

    The Japanese Nikkei rose 1.05 percent and closed at 8,466.4 points, while Hong Kong’s Hang Seng was 2.36 percent up at 19,461.12 points.

    The Chinese Shanghai Composite index was also ruling 3.86 percent higher at 2,291.34 points.