Gift Nifty-Gift Due to poor reports from the IT behemoths Infy and TCS, Nifty futures traded down late on October 12, suggesting that Indian markets may experience a rocky start on Friday and move erratically.
Late Thursday night, Gift Nifty futures traded 84 points lower than the Nifty’s closing price of 19,794; at the time this article was being written, Infy ADR was down 6.62% at $16.45. After TCS underperformed analyst revenue and profit projections the day before, the firm reduced its FY24 revenue guidance. On Thursday, TCS shares fell 1.85% to close at $3543.
A dismal performance by the IT heavyweights will probably keep the market under pressure, according to Dhiraj Relli, MD & CEO of HDFC Securities. “The challenge of higher rates in the US will continue to remain an overhang with contract renegotiations .”
Ambareesh Baliga, an independent market analyst, anticipates continued pressure on the IT equities when markets start on Friday due to FPI selling.
On Thursday, FPIs sold index futures worth 253 crore at a provisional price of 1862.6 crore.
On Thursday, Infosys Ltd. and HCL Technologies Ltd. announced that their revenue growth for the years 2023–24 would be lower than they had anticipated due to the tightening of their large international clients’ budgets in the face of a deteriorating economic climate.
At least three of India’s Big Five tech companies are in for a dismal year with the country’s largest tech services company, Tata Consultancy Services Ltd, already experiencing a revenue loss in the second quarter.
For the September quarter, Infosys and HCL were both above analyst expectations, unlike TCS. Analysts are, however, concerned with the companies’ prognosis and management comments for the second half of the year.
