by admin | May 25, 2021 | Banking, Economy, Markets, News
Mumbai : Broadly negative global cues such as high crude oil prices and concerns over escalation in global protectionist measures coupled with a weak rupee depressed the Indian equity markets on Tuesday.
According to market observers, heavy selling pressure was witnessed in consumer durables, banking and auto stocks.
Index-wise, the Nifty50 on the National Stock Exchange (NSE) closed at 11,520.30 points, lower 62.05 points or 0.54 per cent from its previous close of 11,582.35 points.
Similarly, the barometer S&P BSE Sensex closed in the negative territory. It had opened at 38,460.96 points, closed at 38,157.92 points, lower by 154.60 points or 0.40 per cent from the previous close of 38,312.52 points.
The Sensex registered an intra-day high of 38,518.56 points and a low of 38,098.60 points during the day’s trade.
“Selling continued at Dalal Street as the markets corrected further on Tuesday to end in negative territory for the second consecutive session,” said Deepak Jasani, Head of Retail of Research, HDFC Securities.
“Major Asian markets have closed on a positive note barring the Jakarta and Nikkei indices. European indices like FTSE 100, DAX and CAC 40 traded in the red.”
Geojit Financial Services’ Head of Research, Vinod Nair, said: “Continued weakness in currency and surge in oil price dragged the indices to a consolidation.
“Additionally, concerns on widening deficit and inflation trajectory led domestic bond yield to break 8 per cent mark. Weak global market on account of trade tensions further steered the investor’s sentiment.”
On the currency front, the Indian rupee crashed to close at a record low of 71.58 against the US dollar, weaker by 37 paise than its previous close of 71.21 per greenback.
Investment-wise, provisional data with exchanges showed that foreign institutional investors bought scrips worth Rs 32.64 crore and domestic institutional investors sold stocks worth Rs 21.41 crore.
Sector-wise, only the S&P BSE Teck (technology, entertainment and media) index was in the positive, up by 102.11 points.
In contrast, the S&P BSE consumer durables index declined by 562.61 points, the banking index fell by 443.96 and auto stocks ended 434.70 points lower than its previous close.
In a major stock-wise development, market capitalisation (m-cap) of Tata Consultancy Services (TCS) crossed Rs 8 lakh crore for the first time. It is the second company to reach the landmark level after Reliance Industries.
The m-cap of TCS closed at Rs 8.01 crore on the BSE. Share price of TCS on the BSE Sensex closed at Rs 2,093.20 higher by Rs 38.25 or 1.86 per cent from its previous close.
The top gainers at the Sensex were Infosys up 2.64 per cent at Rs 735.65, TCS up 1.86 per cent at Rs 2,093.20; Wipro, up 1.42 per cent at Rs 313.55; Axis Bank, up 1.39 per cent at Rs 640.50, and Reliance Industries, up 0.97 per cent at Rs 1,242.35.
The majors losers were Asian Paints, down 3.49 per cent at Rs 1,312.05; State Bank of India, down 3.20 per cent at Rs 296.60; Hindustan Unilever, down 2.80 per cent at Rs 1,651.40; Coal India, down 2.61 per cent at Rs 279.95 per share.
—IANS
by admin | May 25, 2021 | Business, Economy, Markets, Medium Enterprise, News
Mumbai : Global software major Tata Consultancy Services (TCS) on Tuesday reported Rs 7,340 crore consolidated net profit for the first quarter of fiscal 2018-19, registering 23.5 per cent annual and 6.3 per cent sequential growth.
In a regulatory filing on the BSE, the city-based IT firm said consolidated revenue for the quarter (Q1) under review grew 15.8 per cent annually and 6.8 per cent quarterly to Rs 34,261 crore.
Under the International Financial Reporting Standard, net income grew 17.2 per cent year-on-year to $1.1 billion and revenue 10 per cent to $5.1 billion for the first quarter.
“Revenue from North America market grew highest in the last 12 quarters or three years by 7 per cent annually and 3.7 per cent quarterly on recover from banking, financial services and insurance (BFSI) and retail,” said TCS in a statement here.
Operating margin remained flat at 25 per cent as in the previous quarter (25.4 per cent).
“Digital business contributed 25 per cent to the overall revenue and grew a whopping 44.8 per cent YoY,” it added.
The company added 2 new clients in $100 million billing rate and 13 clients in $5 million band sequentially.
“We have started the new fiscal year on a strong note, with the growth engine firing on all cylinders. We had good wins, a robust pipeline and accelerating digital demand,” said TCS Chief Executive Rajesh Gopinathan in the statement.
Noting that customers across verticals and markets were embracing the company’s Business 4.0 thought-leadership framework, he said contextual knowledge, full spectrum capabilities and investments in research and innovation were making TCS their preferred partner for growth and transformation initiatives.
TCS Chief Operating Officer N. Ganapathy Subramaniam said the year’s first quarter was excellent due to growth across segments and client additions.
“We are seeing strong demand in cloud transformation, cyber-security, data privacy and automation. Our investments in Machine First Delivery Model and Location-independent Agile are giving customers business benefits and speed to market,” he said.
TCS Chief Financial Officer V. Ramakrishnan said disciplined execution, accelerating growth and currency support helped the company mitigate the impact of wage increases during the quarter.
“A strong quarterly start gives us confidence in our ability to get our operating margin to our preferred range, while continuing to fund the digital investments,” he said.
The company applied for 3,978 patents, including 62 during the quarter, and was granted 715.
Its headcount crossed the 4 lakh mark and touched 400,875 on consolidated basis. Women accounted for 35.6 per cent.
The IT services attrition rate fell 0.1 per cent to 10.9 per cent, while the total attrition rate, including business processing services fell to 11.7 per cent.
“We continue to invest in upgrading the skills of our employees while leveraging their contextual knowledge and domain experience,” said Human Resources global head Ajoy Mukherjee.
The twin strategy has resulted in a dynamic work place and a strong digital solutioning capability to deliver differentiated outcomes for its global customers.
The company’s blue-scrip of Rupee 1 face value ended at Rs 1,877 per share at the end of Tuesday’s trading on the BSE, losing Rs 10.65 from Monday’s closing price of Rs 1,887.65 and opening at Rs 1,895.20.
The scrip also touched a high of Rs 1,900 and a low of Rs 1,872 during the intra-day trading session on the bourses.
—IANS
by admin | May 25, 2021 | Business, Corporate, Corporate Buzz, Large Enterprise
Mumbai : IT bellwether Tata Consultancy Services (TCS) on Monday emerged as the first Indian listed company to cross the $100-billion mark in terms of market capitalisation (m-cap).
Around 11 a.m., the m-cap of the company stood at Rs 675,934.95 crore or $101.60 billion on the BSE.
Shares of the company rose over four per cent to a new high of Rs 3,557 per share.
On Friday, the IT major’s shares rose over seven per cent to Rs 3,419.80 per share, taking its m-cap to over Rs 6.50 lakh crore or around $98 billion — close to the $100 billion mark.
The company’s shares had surged a day after its quarterly results announcement, which reported a net profit for Q4 at Rs 6,925 crore — up 4.6 per cent — from Rs 6,622 crore in the same period in 2017 and up 5.8 per cent sequentially from Rs 6,545 crore a quarter ago.
It also announced 1:1 bonus shares of Re 1 face value to its investors at the end of fiscal 2017-18.
—IANS
by admin | May 25, 2021 | Economy, Markets, News
Mumbai : The key Indian equity indices on Tuesday gave up all gains to close on a flat note, with the BSE Sensex incurring marginal losses while the NSE Nifty50 held on to the green with minute gains. IT major Tata Consultancy Services (TCS) was the top loser on the domestic bourses.
According to market observers, lessened chances of a rate-hike by the Reserve Bank of India (RBI) on the back of easing inflation, along with a huge sell-off in stocks of TCS, pulled the indices lower from their intra-day highs.
On a closing basis, the wider NSE Nifty50 inched up 5.45 points or 0.05 per cent to 10,426.85 points.
On the BSE, the barometer 30-scrip Sensitive Index (Sensex) closed at 33,856.78 points — down 61.16 points or 0.18 per cent from the previous session’s close.
However, the BSE market breadth was bullish with 1,705 advances and 993 declines.
Earlier during the day, healthy macro-economic data, along with healthy buying in banking, consumer durables, oil and gas and healthcare stocks lifted the benchmark indices. The BSE Sensex had reclaimed the 34,000-mark in the course.
“A sell-off from the highs in the afternoon session curbed the gains. PSU banks bounced up, but failed to close at their intra-day highs as a soft CPI (Consumer Price Index) number for February announced on Monday raised hopes of a softer interest rate regime,” Deepak Jasani, Head – Retail Research, HDFC Securities, told IANS.
Data released after market hours on Monday revealed that the country’s factory production growth in January doubled to 7.5 per cent and retail inflation (CPI) eased down to 4.4 per cent for February.
“Major Asian markets have closed on a positive note barring the Jakarta and Shanghai indices, while European indices like DAX, CAC 40 and FTSE 100 traded in the green,” Jasani added.
In terms of the broader markets, the S&P BSE mid-cap index edged higher by 1 per cent and the small-cap index by 1.14 per cent.
On the currency front, the Indian rupee strengthened by 14 paise to close at 64.90 against the US dollar from its previous close at 65.04.
In terms of investments, provisional data with the exchanges showed that foreign institutional investors purchased scrips worth Rs 7,028.42 crore and domestic institutional investors worth Rs 1,613.39 crore.
Vinod Nair, Head of Research, Geojit Financial Services, said: “Market gained a positive momentum on account of easing inflation and better than expected IIP (Index of Industrial Production) data.”
“However, selling in IT and profit booking in banks failed to keep positivity throughout the day. Benign inflation will provide more room to RBI to maintain the current stance rather to consider a rate hike in the near term,” he added.
During the day’s trade, TCS scrips plunged over five per cent on announcements of block deals on both the BSE and NSE.
“TCS shares fell 5.1 per cent after reports of Tata Sons’ plans to sell $1.25 billion of its stake in the company,” Desai added.
Sectorwise, the S&P BSE IT index fell by 196.78 points, followed by Teck (technology, media and entertainment) index by 71.51 points and FMCG index by 1.22 points.
On the other hand, the S&P BSE consumer durables index surged by 282.75 points, oil and gas index by 250.17 points and healthcare index by 140.65 points.
Major Sensex gainers on Tuesday were: Axis Bank, up 2.23 per cent at Rs 530.80; Sun Pharma, up 2.04 per cent at Rs 522.90; Wipro, up 1.65 per cent at Rs 295.55; Dr Reddy’s Lab, up 1.60 per cent at Rs 2,181.40; and Bharti Airtel, up 1.22 per cent at Rs 425.90.
The Sensex losers were: TCS, down 5.22 per cent at Rs 2,892.45; Kotak Bank, down 1.46 per cent at Rs 1,084.55; Coal India, down 1.02 per cent at Rs 294.75; NTPC, down 0.94 per cent at Rs 169.40; and Maruti Suzuki, down 0.66 per cent at Rs 8,753.50.
—IANS
by admin | May 25, 2021 | Business, Corporate, Corporate finance, Investing, Large Enterprise
New Delhi : In its biggest deal to date, Tata Consultancy Services Ltd (TCS) on Friday signed a multi-year agreement worth more than $2 billion with the US-based insurance company Transamerica to digitally transform its life and annuities business.
The partnership enables Transamerica — a leading provider of life insurance, retirement and investment solutions — to enhance its digital capabilities, simplify the service of more than 10 million policies into a single integrated modern platform and drive greater sustainable growth opportunities through better customer experiences.
“The multi-year agreement is worth more than $2 billion in revenues, the largest contract signed by TCS to date,” the company said in a statement.
The agreement is expected to lead to annual run-rate savings of approximately $70 million initially — growing to $100 million over time — for Transamerica.
“TCS is helping to guide many of today’s leading companies through their business 4.0 journeys, in building their digital spines, becoming more agile, creating superior customer experiences, and driving exponential growth,” said Rajesh Gopinathan, CEO and Managing Director of TCS.
“We have invested heavily in our insurance digital platform, TCS BaNCS, and our extensive US capabilities, and are proud to partner with Transamerica in its ongoing transformation and welcome the transitioning employees to promising new careers at TCS,” Gopinathan added.
The partnership will also support Transamerica’s overall transition to a simplified, cloud-enabled platform for agile new product development, enhanced services, acquisitions and strategic innovation investments.
“TCS was carefully selected because of their significant, ongoing investments in technology and their expertise in the insurance and annuity industry,” said Mark Mullin, Transamerica President and Chief Executive Officer.
“TCS will provide valuable administration and quality customer service, and Transamerica will continue to engage with our customers, clients and advisors in the most meaningful ways to them by utilising our digital engagement platforms and developing new solutions that help people save, protect, invest and retire,” Mullin added.
In the European market, “TCS BaNCS” has become a successful digital platform for more than a decade, with more than 17 million policies under administration.
For the US market, TCS has adapted the platform to meet its operational and regulatory needs.
“TCS continuously invests in the latest technologies, local talent and US facilities to help leading US companies adapt to rapidly evolving customer demands. This agreement with Transamerica marks TCS’ entry into a highly specialised US Insurance Third Party Administration marketplace,” said Suresh Muthuswami, President and Global Head, Banking, Financial Services and Insurance Platforms, at TCS.
TCS will also make job offers to the applicable Transamerica employees. Employees transitioning to TCS will be given the opportunity to remain in the same US cities where they are currently based.
Beyond offering roles to 2,200 Transamerica employees across US cities, TCS also plans to hire locally in Iowa, set up relationships with educational institutions and help employees with professional development to gain digital skills and fluency, the company added.
—IANS
