Following the results of Tata Consultancy Services (TCS) and the Reserve Bank of India’s (RBI) monetary policy, Indian stock markets began the trading session this week cautiously. While the broader Asian markets rose, Indian equities lag behind due to IT stocks, which weighed on the Sensex and Nifty 50. With the second-quarter 2021 (Q2FY22) earnings season taking centre stage, domestic equities lag.
At the opening bell, auto, banking, metal, and consumer durables stocks outperformed as the market began its bull run across sectoral indices. Nonetheless, the gains could only be offset by losses in technology stocks due to heavy profit-booking. So far, the day has shown signs of volatility.
The Nifty 50 finished the day with a gain of 23.70 points, or 1.3 percent, at 17,918.90. Throughout the day, the index fluctuated between 17,921.05 and 17,839.10 points.
The BSE sectoral indices fell nearly 1,100 points, led by the IT sector. In comparison to the Bankex, which increased by nearly 370 points, the Auto index increased by approximately 525 points.
Maruti Suzuki, NTPC, and Power Grid all saw their Sensex shares rise by nearly 3%. While Kotak Bank increased by 2%, M&M and Bajaj Finserv both increased by 1.7 percent. Companies such as Bajaj Auto, SBI, IndusInd Bank, and Bajaj Finance all saw modest one-percentage-point gains.
TCS’ revenue increased 16.8 percent year on year to Rs46,867 crore in Q2FY22. In constant currency, the company’s revenue increased by more than 15.5 percent. TCS increased its net income by 14.1 percent year on year in the quarter under review, with a net income of Rs9.624cr.
The net profit margin for the company was 20.5 percent. TCS grew by more than 15% year on year in the third quarter of fiscal year 2022 (Q3FY22) across all business segments. The company’s revenue run rate in the BFSI segment exceeded $2 billion in a quarter.
Infosys And Wipro Are Scheduled To Release Their Second-Quarter Financial Results On Wednesday, October 13th
To begin this trading week, the RBI has kept the policy repo rate under the liquidity adjustment facility (LAF) at 4 percent, as expected. This rate is 3.35 percentage points lower than the marginal standing facility (MSF) rate of 4.25 percentage points, which is the same as the Bank Rate.
Despite a massive fine from China’s market regulator for monopolistic practices, Meituan’s stock rose nearly 8%, Asian stocks were broadly higher overall. The Hang Seng Index, based in Hong Kong, led the gains by more than 580 points. Other Chinese tech stocks, such as Huawei, rose significantly as well, contributing to the rally.
The Australian S&P/Asx And South Korean Kospi Indexes, On The Other Hand, Fell.
Wall Street had a flat week, with the Dow Jones and Nasdaq both ending the week down 7 points. The 10-year Treasury note yield rose to a six-month high of 1.61 percent, while the US dollar index finished the day at 94.07, slightly lower. WTI crude oil prices have risen to their highest level in three years, surpassing $81 per barrel.
Following a 500,000 increase in September, the US Labor Department reported only a 194,000 increase in nonfarm payrolls on Friday. Unemployment, on the other hand, dropped to a four-year low of 4.8 percent, exceeding expectations of a five-year high of 5.1 percent.