Markets trade bearish amid weak global cues; IT stocks worst hit as TCS falls post Q1 numbers

11 Jul 2022 , 09:39 AM

Indian markets began this week’s trading session on a bearish note tracking weak global cues as investors feared about hikes in interest rates and their impact on economic growth globally. On the domestic front, IT stocks nosedived and dragged benchmarks Sensex and Nifty 50. So far in the early deals, Sensex has contracted by nearly 300 points with an intraday low of 54,090.53 and Nifty 50 as much as 85 points with the low of 16,117.85 for the day.

The June 2022 quarterly result impact will influence the equity market for the short run, while central banks tightening policy that is seen critical for economic recovery has dampened markets outlook.

At around 09.36 AM, Sensex was trading at 54,200.12 lower by 281.72  points or 0.52%. The Nifty 50 was trading at 16,152.35 below 68.25  points or 0.42%.

In terms of sectoral indices – Nifty IT was worst hit plummeting by nearly 850 points dragging overall markets, while Nifty Auto and Nifty FMCG dived marginally. However, Bank Nifty, Nifty metals and other sectoral indices were trading in the green by marginal gains.

Nifty gainers were – NPTC surging nearly 1.6% followed by Power Grid and M&M soaring by 1% each. ONGC, Tata Consumers traded higher by 0.74% each.

Losers on Nifty were – Bharti Airtel slipping nearly by 4%, while TCS followed with a 2.6% downside post Q1 results. Wipro, Tech Mahindra, HCL Tech also weighed down by tumbling nearly 2% each.

TCS stock is in focus after announcing the Q1 result. In the first quarter of FY23 (Q1FY23), Its consolidated net profit for the quarter ended June 2022 increased 5.21 percent to Rs9,478 crore, compared to Rs9,008 crore in the same quarter last year. Sequentially, the profit declined 4.51 percent.

Globally, Asian markets opened mixed with the Japanese ‘Nikkei’ trading higher by almost 450 points as the party of recently assassinated ex Prime MInister Shinzo Abe wins the elections by a huge majority which sees stocks react positively. Other markets in Asia however were trading lower as profit booking was seen in most indices.