Marketbuzz Podcast with Vivek Iyer: Sensex, Nifty 50 likely to open in red, IT stocks to drag markets lower
Episode 1116, Oct 13, 2023, 03:35 AM
Indian benchmark indices — Sensex and Nifty 50 — are likely to make a gap down opening dragged by IT stocks in the trading session of October 13.
The cues ahead of the session are very weak as both domestic as well as global markets continue to remain quite muted.
In the US, all major market indices closed nearly half a percent lower, and the US 10-year yield has reached 4.68%, following a nearly 0.4% increase in the US CPI data on a month-on-month basis.
However, the spotlight remains on the Indian information technology sector. Despite TCS offering an extensive buyback at a price premium to the day's closing price, the stock ended lower due to TCS's weak operating performance.
On October 12, Infosys and HCLTech reported results that are likely to disappoint the market today. Both companies revised their guidance for the remainder of the year, leading to a decline in their respective American Depository Receipts (ADRs), with Infosys ADR dropping by over 6% and Wipro ADR ending over 3% lower.
Nifty IT has been an outperformer compared to the Nifty 50 in the last three months, the Nifty IT pack has gained over 7.5% while the Nifty is up just around 2%. Infosys, meanwhile, has risen over 6.5% over the past three months but despite the muted Q1 results, the stock saw a significant amount of recovery.
Tune in to the Marketbuzz Podcast for more cues and news
The cues ahead of the session are very weak as both domestic as well as global markets continue to remain quite muted.
In the US, all major market indices closed nearly half a percent lower, and the US 10-year yield has reached 4.68%, following a nearly 0.4% increase in the US CPI data on a month-on-month basis.
However, the spotlight remains on the Indian information technology sector. Despite TCS offering an extensive buyback at a price premium to the day's closing price, the stock ended lower due to TCS's weak operating performance.
On October 12, Infosys and HCLTech reported results that are likely to disappoint the market today. Both companies revised their guidance for the remainder of the year, leading to a decline in their respective American Depository Receipts (ADRs), with Infosys ADR dropping by over 6% and Wipro ADR ending over 3% lower.
Nifty IT has been an outperformer compared to the Nifty 50 in the last three months, the Nifty IT pack has gained over 7.5% while the Nifty is up just around 2%. Infosys, meanwhile, has risen over 6.5% over the past three months but despite the muted Q1 results, the stock saw a significant amount of recovery.
Tune in to the Marketbuzz Podcast for more cues and news