Wednesday 14 October 2015

Nifty Struggles Near 8,100, TCS Slumps 4%

BSE Sensex and Nifty struggled in early trade today amid weak Asian markets. The Sensex fell over 100 points in early trade while Nifty slipped below 8100, before paring some losses.

Here Are Top 10 Developments:

1) Market heavyweight TCS fell 4 per cent on its Q2 earnings. Though the profit was better than estimates, India's biggest outsourcer missed expectations in terms of constant currency revenue growth. TCS management highlighted strong business momentum and this could support the stock at lower levels, say analysts. The second half of the year is traditionally a weaker period for Indian IT companies.

2) Commenting on TCS Q2 earnings, brokerage Maybank in a report said strong volume and orderbook growth lend confidence. It maintains 'buy' on TCS shares.

3) FMCG major HUL will announce its earnings later in the day. The stock traded 0.5 per cent lower.

4) Rate sensitive banking and auto stocks were under some pressure.

5) Some buying was seen in FMCG and healthcare stocks, lending some support to the market.

6) Domestic institutional investors, who have all along been strong buyers of Indian equities in the past few months, have been net sellers in the past six sessions, putting pressure on markets at higher levels.

7) Analysts say if Nifty breaches 8,000 levels it could accelerate selling pressure.

8) Gaurang Shah of Geojit BNP Paribas Financial Services said that it will be difficult for Nifty to sustain above 8,200 levels on the upside. Markets are unlikely to draw much support from the earnings and the Bihar election results would provide direction to the markets, he added.

9) Asian markets were under pressure today with Japan's Nikkei down nearly 2 per cent.

10) On Wall Street on Tuesday, stocks slipped, with the S&P 500 touching a fresh seven-week high before ending solidly down.

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