Indian markets started this week’s trading session bearish, following weak global signals as investors feared rate hikes and their impact on global economic growth. On the domestic front, IT stocks fell, dragging the Sensex and Nifty 50 benchmarks lower. In opening trades so far, the Sensex is down nearly 300 points to 54,090.53 and the Nifty 50 is down 85 points to 16,117.85. Day.
The impact of the June 2022 quarterly results will impact equity markets in the near-term, while tight central bank policies, seen as key to economic recovery, have dampened the market outlook.
The Sensex was trading down 281.72 points or 0.52% at 54,200.12 around 09:36. Nifty 50 traded down 68.25 points or 0.42% to 16,152.35.
In terms of industry indices, Nifty IT was the hardest-hit among the overall markets, falling nearly 850 points, while Nifty Auto and Nifty FMCG declined marginally. However, Bank Nifty, Nifty Metals and other industry indices traded in the green with modest gains.
Nifty was the winner – NPTC was up about 1.6%, followed by Power Grid and M&M, up 1%. ONGC and Tata Consumer each traded up 0.74%.
There were losers in Nifty — Bharti Airtel slipped nearly 4%, while TCS’s post-Q1 results fell 2.6%. Wipro, Tech Mahindra, HCL Tech were also down around 2%.
The TCS share is in focus after the announcement of the Q1 results. In the first quarter of FY23 (Q1FY23), consolidated net profit increased by 5.21 per cent to Rs.9,478 crore for the quarter ending June 2022 versus Rs.9,008 crore for the same quarter last year. Sequentially, earnings declined 4.51 percent.
Globally, Asian markets opened mixed with trading in Japan’s ‘Nikkei’, with recently assassinated former Prime Minister Shinzo Abe’s party overwhelmingly winning the election, prompting a positive reaction on equities. However, other markets in Asia traded lower as most indices posted profit bookings.