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Last Updated : Oct 14, 2016 11:42 AM IST | Source: Moneycontrol.com

Sensex, Nifty flat; TCS up 1%, Infosys slips 3% on low guidance

Infosys is down 3 percent on lower guidance while TCS is up 1 percent. HUL, Lupin, Bharti and HDFC are losers in the Sensex.


Moneycontrol Bureau

10:50 am Infosys' client addition:
CEO Vishal Sikka says the deal pipeline continues to be healthy with winning 6 large deals in Q2 worth USD 1.2 billion.


Infosys has added 78 clients in Q2, taking total to 1,136 active clients. It added 1 client in USD 100 million category and 2 clients in USD 50 million category.

10:40 am Market Update:
Equity benchmarks remained in consolidation mode after yesterday's sharp sell-off. The Sensex was up 31.96 points at 27675.07 and the Nifty up 8.55 points at 8581.90.

The market breadth remained strong as about two shares advanced for every share falling on the BSE.

10:30 am Railways earnings:
Compounding the woes of railways, total earnings from goods and passengers fell by over 11 percent from the target in September this year as against the last year for the same period, causing concern in the rail administration.


Railways have earned Rs 12,413.96 crore in September this year as against the target of Rs 13,961.91 crore for the month, a decrease of 11.09 percent.

Close

The total earnings from goods in September was Rs 7,719.52 crore as against the target of Rs 8,564.27 crore, a decline of 9.86 percent, according to Railway Ministry data.


In passenger segment also the earnings are way behind the target as railways earned Rs 3,815.43 crore as against the target of Rs 4,253.71 cr, a decrease of 10.30 percent.


10:20 am Oil woes: International oil prices dipped over doubts that a planned cut in crude production could be achieved on a scale sufficient to rebalance a market that has been oversupplied for two years. Traders said the dip was a result of skepticism that a planned oil output cut by the Organization of the Petroleum Exporting Countries (OPEC) and potentially non-OPEC member Russia would be sufficient to rein in a global production overhang which has been ongoing for two years and still stands around half a million barrels per day (bpd) in excess of consumption. 

10:15 am Market outlook:
Combination of factors such as passage of Goods and Services Tax, implementation of Seventh Pay Commission, besides a good monsoon and the central bank cutting rates is likely to trigger earnings recovery for companies going ahead, according to Gautam Trivedi, Managing Director and Chief Executive of Religare Capital Markets.

Trivedi said the fruits of such factors will likely propel earnings recovery in the first quarter of FY18, adding that it is too early to predict a V-shaped recovery in the third quarter of FY17.

10:10 am Infosys: 
“We focused on strong execution in Q2with our core IT services business showing good progress on the strength of our innovation and operational initiatives. While we continue to navigate an uncertain external environment, we remain focused on executing our strategy and increasing momentum of our software plus services model. Considering our performance in the first half of the year and the near-term uncertain business outlook, we are revising our revenue guidance.” said Vishal Sikka, CEO. 

Don't miss: Infosys Q2 profit up 5%; cuts FY17 revenue guidance to 8-9%


The market is quite volatile reacting to Infosys September results. The Sensex is down 24.84 points at 27618.27, and the Nifty down 8.45 points at 8564.90.
About 1086 shares have advanced, 675 shares declined, and 86 shares are unchanged.


Infosys is down 3 percent on lower guidance while TCS is up 1 percent. HUL, Lupin, Bharti and HDFC are losers in the Sensex.


GAIL, ONGC, Reliance, L&T and Adani Ports are top gainers in the Sensex.

Gold prices edged lower as stocks firmed and the US dollar rose on expectations the Federal Reserve would raise interest rates by year-end. Markets will next look to Friday's US retail sales data and remarks from Fed Chair Janet Yellen, who will address a Boston Fed economics conference at which Boston Fed governor Eric Rosengren will also speak.



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First Published on Oct 14, 2016 10:00 am
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