Indian equity benchmarks settled lower on Wednesday after three days of gains amid profit taking ahead of macroeconomic data reports due later in the day and the first quarter results from IT majors TCS and HCL Technologies.
The BSE Sensex fell 223.94 points or 0.34 per cent to close 65,393.90. The NSE Nifty slipped 55.10 points or 0.28 per cent to settle at 19,384.30.
"The range-bound movement in the Indian indices was influenced by the likelihood of subdued IT earnings. While optimism about moderation in US inflation supported the broad index," said Vinod Nair, Head of Research at Geojit Financial Services.
"Further, an uptick in domestic food inflation on the back of higher mandi prices trending above MSP and muted Kharif sowing forced the investors to be cautious. Monsoon progress and the Kharif sowing trend in July are the keys to the future inflation trend," said Nair.
Top Stocks To Watch For 13 July:
Tata Consultancy Services
TCS reported a 16.8 per cent rise in net profit on year-on-year (YoY) basis in the quarter ended 30 June 2023, on the back of strong growth in total contract value (TCV) deal wins despite a tough business environment. Consolidated revenue for the first quarter stood at Rs 59,381 crore, a growth of 13 per cent year-on-year. In constant currency terms, the revenue increased 7 per cent YoY.
The company reported a 7.6 per cent YoY increase in net profit to Rs 3,534 crore in the first quarter of the financial year 2024 ended on 30 June 2023. On a sequential basis, net profit was down by 11.2 per cent due to ramp downs in deals and segments like Hi-tech and telecom.
The company will replace HDFC on the S&P BSE Sensex from 13 July. The announcement was made by the stock exchange on 5 July as HDFC Ltd, which merged with HDFC Bank earlier this month, will delist from the benchmark index today.
The company’s promoter, Patanjali Ayurved, will sell a 7 per cent stake or 2.53 crore shares on 13-14 July. The floor price of the offer will be Rs 1000 per share. The promoter will have the option to additionally sell up to 2 per cent in the event of over subscription.
Promoter Ajay Singh, who is also the CMD of SpiceJet, will invest Rs 500 crore in capital through equity or convertible securities on a preferential basis. Funds to be considered equity shares of promoters in the government’s ECLG scheme.