SENSEX 16748.29 -276.80
NIFTY 5037.50 -80.75
USD/INR 0049.30 +00.34
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UPDATEDTIME 09.28 PM 18 OCTOBER 2011
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Indian
shares fell 1.6 per cent to their lowest close in two weeks on Tuesday, with
export-driven Tata Consultancy Services sliding the most in more than two years
over uncertain global economic outlook.
Concerns foreign funds could pull out more from India, which has been one of the world's worst performing markets this year, also weighed.
Traders said investor sentiment was dented by comments from the German finance minister against a quick-fix to Europe's debt problems, slowing growth in China and a warning on France's sovereign credit rating.
Software services companies that get most of their revenue from exports led the fall.
Tata Consultancy (TCS), India's biggest software services exporter, fell 7.7 per cent to 1,033.55 rupees, a day after the company reported lower-than-expected quarterly earnings and said the outlook for pricing was tough.
It was the steepest one-day slide since May 19, 2009 when it had slumped 10 per cent.
The benchmark, which had risen 5.2 per cent last week in a bounce back, is down about 17 per cent so far this year.
Ostwal said investors were also wary after monthly derivatives contracts expiry was brought forward by two days to Oct. 25 due to holidays.
Shares in HCL Technologies , India's fourth largest software services firm, fell 8.75 per cent as investors shrugged off a 50 per cent jump quarterly profit and focused on a cloudy outlook for the sector amid slowing global growth.
India's showpiece $76 billion industry gets more than 90 per cent of its revenue from providing technology services to overseas clients and counts the United States and Europe as its biggest markets.
Concerns foreign funds could pull out more from India, which has been one of the world's worst performing markets this year, also weighed.
Traders said investor sentiment was dented by comments from the German finance minister against a quick-fix to Europe's debt problems, slowing growth in China and a warning on France's sovereign credit rating.
Software services companies that get most of their revenue from exports led the fall.
Tata Consultancy (TCS), India's biggest software services exporter, fell 7.7 per cent to 1,033.55 rupees, a day after the company reported lower-than-expected quarterly earnings and said the outlook for pricing was tough.
It was the steepest one-day slide since May 19, 2009 when it had slumped 10 per cent.
The benchmark, which had risen 5.2 per cent last week in a bounce back, is down about 17 per cent so far this year.
Ostwal said investors were also wary after monthly derivatives contracts expiry was brought forward by two days to Oct. 25 due to holidays.
Shares in HCL Technologies , India's fourth largest software services firm, fell 8.75 per cent as investors shrugged off a 50 per cent jump quarterly profit and focused on a cloudy outlook for the sector amid slowing global growth.
India's showpiece $76 billion industry gets more than 90 per cent of its revenue from providing technology services to overseas clients and counts the United States and Europe as its biggest markets.
The 30-share
Bombay Stock Exchange benchmark Sensex ended in the red as weak cues from
global peers spooked sentiments. All the sectoral indices ended in the lower
with technology, realty and capital goods being the worst hit.
The Sensex ended at 16748.29, down 276.80 points. The index touched intraday low of 16669.04 and high of 16824.76.
The National Stock Exchange's Nifty closed at 5037.50, down 80.75 points. The broader index touched a high of 5057.50 and low of 5011.05 in trade today.
BSE Midcap Index was down 1.17 per cent and BSE Smallcap Index fell 0.97 per cent.
Amongst the sectoral indices, BSE IT Index fell 3.49 per cent, BSE Realty Index was down 2.36 per cent and BSE Capital Goods Index was down 1.88 per cent.
TCS (-7.35%), Tata Motors (-3.70%), Hindalco Industries (-3.61%), Sterlite Industries (-3.14%) and Wipro (-2.97%) were amongst the major Sensex losers.
"TCS' reported revenue and EPS growth was marginally below our and Street expectations. USD revenues grew by 4.7% qoq to US$2.53bn, below our estimate of US$2.5t.
"The stock might move sideways in the near term as the Q2 results lacked positive surprises. Yet we believe that TCS is relatively well placed to sail through the challenging environment for IT services vendors. TCS and Infosys are key holdings in IDFC model portfolio despite our underweight stance on the sector. We value TCS at Rs1,230 based on 19x FY13E EPS (from Rs1,180 earlier) for a 12-month price target. Trading at ~20x FY12E and ~17x FY13E.
Coal India (2.74%), HDFC Bank (0.38%), Tata Power (0.25%) and HDFC (0.04%) were the only index gainers.
Market breadth was negative on the BSE with 1836 losers against 921 gainers.
Regards
The Sensex ended at 16748.29, down 276.80 points. The index touched intraday low of 16669.04 and high of 16824.76.
The National Stock Exchange's Nifty closed at 5037.50, down 80.75 points. The broader index touched a high of 5057.50 and low of 5011.05 in trade today.
BSE Midcap Index was down 1.17 per cent and BSE Smallcap Index fell 0.97 per cent.
Amongst the sectoral indices, BSE IT Index fell 3.49 per cent, BSE Realty Index was down 2.36 per cent and BSE Capital Goods Index was down 1.88 per cent.
TCS (-7.35%), Tata Motors (-3.70%), Hindalco Industries (-3.61%), Sterlite Industries (-3.14%) and Wipro (-2.97%) were amongst the major Sensex losers.
"TCS' reported revenue and EPS growth was marginally below our and Street expectations. USD revenues grew by 4.7% qoq to US$2.53bn, below our estimate of US$2.5t.
"The stock might move sideways in the near term as the Q2 results lacked positive surprises. Yet we believe that TCS is relatively well placed to sail through the challenging environment for IT services vendors. TCS and Infosys are key holdings in IDFC model portfolio despite our underweight stance on the sector. We value TCS at Rs1,230 based on 19x FY13E EPS (from Rs1,180 earlier) for a 12-month price target. Trading at ~20x FY12E and ~17x FY13E.
Coal India (2.74%), HDFC Bank (0.38%), Tata Power (0.25%) and HDFC (0.04%) were the only index gainers.
Market breadth was negative on the BSE with 1836 losers against 921 gainers.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
Group mail id: makin97NSEtips@yahoogroups.co.in
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