Moneycontrol Bureau
The markets fell in early trade but made a significant recovery post noon on Friday. However, poor results, especially by cement major ACC saw the markets slip in last hour. The Sensex closed down 52.66 points or 0.2 percent at 28077.18 and the Nifty slipped 6.35 points at 8693.05. About 1458 shares advanced, 1320 shares declined, and 246 shares were unchanged.
Earnings of IT and cement companies were in focus today. Harsha Upadhyaya of Kotak Mutual Fund said that issues in the IT sector won’t go away soon. “Overall the sector is under pressure; growth and pricing are under pressure. We believe structural issues need to be addressed.” Most IT companies are sitting on large cash reserves which is not helping their return ratios, he said.
HCL Tech 's Q2 surprised the street with firm results. Its Q1 net profit has beaten estimates, at Rs 2015 crore in July-September quarter down 1.9 percent from Rs 2055 crore in last quarter. Its Q2 dollar revenue growth is in-line, rising 1.8 percent at USD 1722 million against USD 1691 million in quarter-ago period. In rupee terms, its revenue grew 1.6 percent at Rs 11519 crore compared to Rs 11336 crore quarter-on-quarter. The company has reiterated its FY17 constant currency guidance at 12-14 percent and EBIT guidance to 19.5-20.5 percent. Its revenue in constant currency in Q2 was up 2.8 percent on sequential basis
The stock rose 2 percent from previous close. HUL, TCS, HDFC Bank, Dr Reddy's Labs and Wipro were gainers in the Sensex. Wipro jumped 1 percent ahead of its Q2 results.
Cement company ACC missed analysts' expectations on earnings front Friday with consolidated profit in third quarter falling 28.8 percent year-on-year to Rs 82 crore on lower operational income and revenue. Revenue during the quarter declined 9.6 percent to Rs 2,521 crore compared with year-ago period, dented by lower-than-expected sales volumes. The company follows January-December as its financial year.Meanwhile, Axis Bank, Reliance, Cipla, HDFC and Asian Paints were losers in the Sensex.Among global peers, European stocks were higher after the European Central Bank (ECB) quashed talk regarding its future monetary policy, sending the euro to its lowest point since March and dampening risk appetite.
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