Indian markets declined on Thursday as decreasing oil prices were partially offset by a decline in information technology (IT) firms owing to disappointing earnings by Tata Consultancy Services.
Indian shares slip as fall in IT stocks: As of 10:05 a.m. IST, the NSE Nifty 50 index was down 0.12% at 19,788.35, and the S&P BSE Sensex was down 0.12% at 66,391.68.
Despite eight out of the thirteen Nifty sectoral indices seeing advances, the IT index’s 1% fall kept markets muted.
TCS, the largest IT business in India, suffered a loss of up to 1.77%, falling to a low not seen in more than four months as a result of missed second-quarter revenue projections and signs of ongoing client spending weakness.
Although analysts deemed TCS’s robust order book to be a plus, the short-term revenue outlook remained unimpressive.
According to Mukesh Kochar, national head of wealth at AUM Capital, “the valuation of the Indian market is not cheap and investors are waiting on the sidelines to use any downside to increase allocations.”
In addition to profits, analysts predicted that Thursday’s local and US inflation statistics as well as oil prices will act as major market catalysts.
“Economic Indicators and Market Shifts: Retail Inflation, Oil Prices, and Stock Performances”
According to a Reuters poll, retail inflation likely decreased to 5.50%, which is within the Reserve Bank of India’s tolerance range.
The decline in oil prices following a commitment to stabilise the market by a major OPEC producer, Saudi Arabia, negated assistance provided by the slump in IT stocks.
In Asia hours, Brent crude futures declined to $85.50. For importers like India, which is the third-largest consumer of the commodity, a drop in oil prices is advantageous.
Casino operator Delta Corp saw a 4% increase in its share price among individual equities after reporting greater second-quarter profit on decreased tax charges.
After a Bloomberg story said that multiple private equity groups are eyeing the company’s assets, Aster DM Healthcare increased by more than 5%.
Real estate equities, which had increased 7.26% in three sessions following the RBI’s rate halt, decreased by 0.7%.