Tech stocks trail Indian stocks ahead of TCS earnings

0

A security guard walks past the National Stock Exchange (NSE) logo inside its building in Mumbai, India, May 28, 2019. REUTERS/Francis Mascarenhas

Join now for FREE unlimited access to Reuters.com

Register

BENGALURU, April 11 (Reuters) – Indian stocks fell on Monday on weakness in the technology sector ahead of Tata Consultancy Services earnings that would kick off the March quarter corporate earnings season.

The NSE Nifty 50 Index (.NSEI) ended down 0.62% at 17,674.95 and the S&P BSE Sensex Index (.BSESN) fell 0.81% to 58,964.57.

“We are seeing a good amount of selling in information technology stocks as people anticipate that business growth in Europe could be hampered by the Ukraine crisis,” said Saurabh Jain, assistant vice president at SMC Securities.

Join now for FREE unlimited access to Reuters.com

Register

Jain also said rising inflation is causing a shift from growth stocks, including IT, to value stocks such as real estate and financials.

The Nifty IT index (.NIFTYIT), which has lost more than 9% so far this year, fell 1.4% on Monday. Industry heavyweight Tata Consultancy Services (TCS.NS) rose 0.3% ahead of its post-market earnings announcement.

TCS earnings mark the start of India’s month-long corporate earnings season, with investors likely to focus on the impact of soaring inflation on profit margins.

After the initial market shock from the conflict in Ukraine, the Nifty 50 index has recovered 13% since hitting a seven-month low in March, thanks in part to a pullback in oil prices.

“An important factor supporting the market is the continued flow into domestic equity mutual funds…This new trend of domestic money outmaneuvering foreign capital is likely to be a major determinant of future trends,” he said. said VK Vijayakumar, chief investment strategist at Geojit. Financial services.

Global markets were also weaker on Monday and bond yields climbed as caution gripped markets ahead of central bank meetings and US inflation data.

Indian markets will be closed on Thursday and Friday for public holidays.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Nallur Sethuraman in Bangalore; edited by Aditya Soni

Our standards: The Thomson Reuters Trust Principles.

Share.

Comments are closed.