Markets log lacklustre demand as major tech stocks weigh; Wipro, TCS top bears

13 Oct 2022 , 09:39 AM

The start of Thursday’s trading session was cautious in Indian stock markets after the tech giants Wipro and HCL Tech results. However, IT stocks at home dragged benchmarks Sensex and Nifty 50 with September 2021 (Q2FY22) quarterly earnings season taking full focus.

Amid weak global cues, in the opening bell, the market was on a cautious tone as Banking, IT, Consumer Durables stocks under pressure, however, Auto, metals, FMCG were on upside as the gains could only manage to offset the losses due to heavy profit-booking in tech stocks. The day is seen to be volatile.

At around 9:36 AM, Sensex was trading at 57,513.69 down by 112.22 points or 0.19%. Nifty 50 traded at 17,081.45 lower by 42.15 points or 0.25%. 

In terms of sectoral indices, on NSE, the IT index tumbled more than 100 points amid quarterly results. The Auto index surged near 90 points, while the pharma and metal index also climbed marginally.

Nifty bulls were – Hindalco, HCL Tech surging more than 3.5% each. M&M and Eicher Motors climbing over 1.5% each, while Tata Steel jumped 0.8%.

Nifty bears were – Wipro plummeting nearly 6% while HDFC followed with 1.2% downside. TCS dipped more than 1%, while Bajaj Finserv and HDFC Bank plunging 0.7% each.

In Q2FY22, Wipro posted a consolidated net profit of Rs2,659 crore in Q2FY23 down by 9.27% yoy but higher by 3.72% qoq. Meanwhile, its consolidated revenue came in at Rs22,540 crore higher by 14.6% yoy.

IT major Infosys stocks will be in focus as it is set to post its Q2 earnings later today. Further, in adition this, companies like Mindtree, Angel One, Anand Rathi Wealth, Aditya Birla Money, Cyient and Den Networks are set to announce their Q2FY23 earnings later today.

On the global front, Asian markets opened flat as the Japanese “Yen’ hit a 24 year low against the US dollar. Most other Asian markets will await the CPI inflation number due today which could moderately turn the outlook on rates in the coming months.

On Wall Street, overnight, US markets logged profit bookings for another day with Dow Jones seeing intra day gains of over 220 points before ending lower by 22 points. Nasdaq closed flat after seeing swings of over 100 points.

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