Nifty IT index extends decline for fourth day; Infosys, TCS fall up to 2%
Posted on 21st December 2018 |
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Shares of information technology (IT) companies were under pressure on Friday with the Nifty IT index falling over 1 per cent and extending its decline into the fourth straight day, after the US indices extended falls as sentiment remained fragile.
Tata Consultancy Services (TCS), Infosys, Wipro, NIIT Technologies, Larsen & Toubro Infotech, KPIT Technologies, Tata Elxsi and Sonata Software were down between 1% to 2% on the National Stock Exchange (NSE).
At 12:07 am, the Nifty IT index was down 1.3% at 14,354, as compared to a 1.2% decline in the Nifty 50 index. In past four trading days, the IT index has slipped 3.4% against a 0.45% fall in the benchmark index.
“US stocks continue to sell-off with Nasdaq at the cusp of entering 'bear' market territory as sentiment turns weak. The US dollar sees a sharp decline to hit a six-week low with most emerging market currencies seeing gains,” IIFL Securities said in a client note.
A significant and faster-than-expected slowdown in the US and global economy, the rise in interest rates in the US and trade war with China could be the catalyst. Faster-than-expected return to Indian ‘financials’ as interest rates stabilise and stressed asset provisioning peaks are the major downside risks for IT sector, according to Nirmal Bang Equities.
“Robust global economic growth combined with tight liquidity globally will help the sector initially as the Indian currency rupee depreciates (probably a bit more than what we had anticipated), but there would come a time when the tightness of financial conditions will adversely impact developed market growth, revenue growth for Global 2000 companies, their spending plan and consequently demand for Indian IT services,” the brokerage firm said in a report dated December 5, 2018.
“We, however, believe that it is probably another 12 months away and do not foresee any material negative to develop on the demand front in the next six months. The real risk, in our view, is the elevated revenue growth expectations (in USD terms) for FY20 and FY21. The consensus is likely to moderate as the capex cools off,” it added.
Nifty IT index has fallen 12% from its closing high level of 16,235 on September 25, 2018, against 2.2% decline in the Nifty 50 index.
Despite the recent correction, IT index has outperformed the market by gaining 25%, as compared to a 4% rise in the benchmark index thus far in the calendar year 2018. |
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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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