Sensex erases losses of day smelling TCS quarterly result
Image credit X @TCS
Stock Market erases losses ahead of TCS Q1 result
By S Jha
New Delhi, July 11: Fate of stock market on Thursday was tied with Tata Consultancy Services (TCS). Sensex and Nifty rallied strongly with gains in TCS, only to reverse the trend quickly as the US inflation number was eyed by the street.
The early moments in the day on Thursday saw TCS strongly rallying. The rally in the IT counters was aligned to the gains of NASDAQ.
The tech-bourse of the US equity market has been on an upswing. The NASDAQ is extending gains amid rises in shares of tech stocks.
TCS was joined by the likes of HCL Technology and Infosys on Thursday morning. But with a quarter of an hour session, the IT stocks had blown away all the steam.
TCS was set for unveiling of the quarterly results in the off-market hour. After the market’s closing bells, TCS sprung a surprise to give numbers that was hailed by several analysts.
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Profit and revenue both beat the street estimates. TCS reported first quarter profit of ₹12,040 crore against the street estimate of around ₹11990 crores.
The IT behemoth along with Infosys sets the trend for the street on the earning seasons. Dollar revenue also grew by 7.5 per cent against 2.7 per cent of analysts.
With only an hour to go for the unveiling of the quarterly results of TCS, indices erased all the losses. Nifty recovered over 130 points from the day’s low. Bank Nifty also covered losses of over 400 points from the day’s low.
The fall in the frontline stocks was led by the HDF Bank and Mahindra and Mahindra. Both the stocks have been trending lower for the past few days.
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In the meantime, the US retail inflation has come at 3.3 per cent against the street expectation of 3.4 er cent. This should be a positive cue for the street.
The action on Thursday was playing in the PSU space. There was a feverish pitch action among the shipping stocks.
Shipping Corporation of India rallied to an upper circuit of 20 per cent. GE Shipping, which had reported strong set of numbers in the last quarterly results, also made strong gains.
Pipavav Port was also in high demand. The shipyard companies – Garden Reach, Cochin Shipyard, and Mazagon Dockyard Shipyard – posted above five per cent gains. The Rail counters saw a flat to positive response from the investors.
The defence stocks from the private space such as Data Patterns and Paras Space and Defence posted strong gains on Thursday.
Disclaimer: This article makes no recommendation for buy or sell of shares of any company.
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