Sensex ends flat; TCS stocks spurt 3.6% ahead of results

BL Internet Desk Chennai | Updated on January 11, 2018


Traders remain wary ahead of corporate earnings, Union Budget

The S&P BSE Sensex ended marginally lower as investors remained cautious ahead of key corporate earnings later this week and the Union Budget next month.

Domestic sentiment was also hit as Asian shares stepped back from their 2007 high, with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.47 per cent after six straight days of gains through Tuesday.

The 30-share BSE index Sensex closed lower by 10.12 points or 0.03 per cent at 34,433.07 and the 50-share NSE index Nifty closed down 4.8 points or 0.05 per cent at 10,632.20.

Among BSE sectoral indices, IT index gained the most by 1.84 per cent, followed by TECk 1.46 per cent, realty 1.16 per cent and metal 0.1 per cent. On the other hand, auto index fell 0.68 per cent, consumer durables 0.65 per cent, capital goods 0.37 per cent and PSU 0.33 per cent.

Top five Sensex gainers were TCS (+3.64%), Wipro (+2.66%), Coal India (+1.33%), Adani Ports (+1.05%) and Infosys (+0.99%), while the major losers were Dr Reddy's (-1.45%), NTPC (-1.25%), Asian Paints (-1.22%), Bajaj Auto (-1.1%) and State Bank of India (-1.05%).

Financials such as Housing Development Finance Corp Ltd fell, but a surge in IT stocks such as Tata Consultancy Services curbed losses in the indexes.

Nifty IT index closed 2.2 per cent higher, with Tata Consultancy Services ending up 3.6 per cent. Tata Consultancy Services is due to post December-quarter results on Thursday. Housing Development Finance Corp slipped 0.5 per cent.

Telecom stocks edged higher on reports that the Telecom Commission relaxed the cap on spectrum holdings of telecom operators in line with the telecom regulator's recommendations.

Shares of Welspun India Ltd soared as much as 12.4 per cent to Rs 82.50, their highest since August 7 on block deals.

Union Budget

Finance Minister Arun Jaitley is expected to present the Union Budget for the 2018/19 financial year on February 1, amid investor concerns that the government could unveil some populist measures with heavier spending than this year.

Key corporate earnings will kick off this week. Tata Consultancy Services is due to post December-quarter results on Thursday, followed by Infosys on Friday. Tata Consultancy shares were flat, while Infosys was 0.5 percent lower.

Early trade

The 30-share BSE index Sensex rose 122.44 points or 0.35 per cent to hit a new peak of 34,565.63, surpassing its previous record (intraday) of 34,488.03 points hit yesterday. The gauge had gained almost 650 points in the previous four sessions to close at a record high of 34,443.19 on Tuesday.

The 50-share NSE index Nifty gained 18.50 points or 0.17 per cent to 10,655.50. The gauge touched an intraday high of 10,659.15 and closed at record high of 10,637 on Tuesday.

Asian shares

Asian shares hovered just below their 2007 record peak on Wednesday, supported by expectations of solid corporate earnings on the back of synchronised growth in the global economy.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed in early trade, sitting just 0.4 per cent below the record high touched in November 2007, having risen for six straight days since the start of new year. Japan's Nikkei was also flat in early trade, near a 26-year high hit the day before.

Wall Street's major indexes extended the New Year rally to record levels into a sixth day, on expectations of solid corporate profit growth.

(With inputs from Agencies)

Published on January 10, 2018

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