Sensex flat as tariff tussle continues; TCS hits record high
Indian shares were flat on Wednesday as worsening trade tensions between the world’s two biggest economies hurt sentiment, while Tata Consultancy Services Ltd hit an all-time high a day after the company posted a record quarterly net profit.
Broader Asian shares fell due to a sell-off in Chinese markets after the United States threatened to slap 10 percent tariff on an additional $200 billion worth of Chinese goods pushing the two economies ever closer to a full-scale trade war.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.2 percent.
The broader NSE Nifty was 0.03 percent lower at 10,944.35 as of 0618 GMT, while the benchmark BSE Sensex inched down 0.02 percent to 36,233.89.
“Global markets will continue to remain an important factor for our market,” said Dhananjay Sinha, head of institutional research, Emkay Global Financial Services.
“With respect to corporate earnings, the numbers might look somewhat better than last year’s,” he added.
India’s biggest software services exporter, TCS, posted a record net profit in June quarter driven by strong growth in its Banking, Financial Services and Insurance unit.
The Nifty IT index rose 1.3 percent led by TCS, up as much as 3.6 percent.
Among the gainers, PNB Housing Finance Ltd surged 6.4 percent after it said on Tuesday Punjab National Bank and Quality Investment Holdings, an arm of global private equity investor Carlyle Group LP, are selling their stakes in the company.
Shares of IDBI Bank Ltd rose nearly 10 percent on reports Life Insurance Corporation of India’s planned acquisition of a majority stake in the state-run bank may trigger an open offer and preferential allotment.
Meanwhile, metal stocks took a beating with shares of copper and zinc producers falling as much as 2.9 to 4.3 percent after metal prices slumped to their lowest in about a year.
Nifty metal index slipped 3 percent, with Hindalco Industries Ltd and Hindustan Zinc Ltd falling 3.5 and 4 percent, respectively.
Gold of 99.9 and 99.5 per cent purity fell by Rs 80 each to Rs 30,890 and Rs 30,740 per ten gram, respectively.
PayU said it agreed to acquire Israeli payment technology provider Zooz to support its expansion in high-growth markets.
BTVI’s Executive Editor Siddharth Zarabi, in an exclusive interview with Rajnish Kumar, Chairman at State Bank of India, talks about Indian macros and asks important questions about the Indian economy and public sector banks.
Lodha Developers has reported a 32% rise in its consolidated net profit at Rs 790 crore during the last fiscal on account of higher sales, especially in the affordable housing segment.
The station, which was named after Lord Elphinstone, the Governor of Bombay Presidency from 1853 to 1860, has now been renamed in honour of a local deity.
Lavasa -an ultimate getaway, a city that would offer the charms of European locales, with five star comforts in a scenic part of Maharashtra has now become an abandoned town.
A second chargesheet by the ED has confirmed the trail of illegal cash Mallya transferred to his accounts across global tax havens.
Delayed payment by GMR-led DIAL, the Delhi airport operator, to the CISF guards could eventually lead to passengers paying more to fly out of the Indian Capital.
The West Bengal Police has claimed to have busted a Rs 100 crore plus job racket in the Indian Railways following a crucial arrest in the Indian Capital.