Quick Wrap: Nifty IT Index gains 4.34%
Powered by Capital Market - Live News
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
4 hours ago
- New Indian Express
Trent and TCS lead Nifty50 losers in 2025 with over 20% decline
Two leading Tata Group firms -- Trent Ltd and Tata Consultancy Services (TCS) -- are among the worst performers in the NSE Nifty50 index so far in 2025. Trent's shares have slumped over 25% year-to-date, making it the biggest laggard in the benchmark index. TCS follows closely, with its stock declining more than 21% this year. This sharp underperformance contrasts with the Nifty50's 6% gain in the same period. Investors are concerned about Trent's ability to sustain the 35% CAGR revenue growth it achieved over the past five years. Meanwhile, TCS faces renewed pressure after reporting a lacklustre Q1FY26 result. Shares of Trent hit a 52-week high of Rs 8,345 apiece in October 2024 and are now trading at Rs 5,313. The scrip fell as much as 11% on July 4 after the company, in its annual general meeting, highlighted that growth in first quarter of FY2026 will be around 20%, which is significantly below the five-year CAGR of 35%. Following this, brokerage firm Nuvama reduced its FY2026 and FY2027 revenue growth estimates on Trent by 5% and 6% and its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) estimates by 9% and 12% respectively over the same time frame. Nuvama has also downgraded Trent to "hold" from "buy" and cut its price target to Rs 5,884 from Rs 6,627 earlier.
The Print
4 hours ago
- The Print
Sensex, Nifty fall for 4th day on selling in IT shares, foreign fund outflows
The 50-share NSE Nifty settled lower by 67.55 points or 0.27 per cent to 25,082.30. The 30-share BSE Sensex dropped by 247.01 points or 0.30 per cent to settle at 82,253.46. During the day, it fell 490.09 points or 0.59 per cent to 82,010.38 but recovered some of the losses towards the close. Mumbai, Jul 14 (PTI) Benchmark stock indices Sensex and Nifty declined on Monday, extending the losing run to the fourth day amid selling in IT shares and foreign fund outflows. Sensex has dropped nearly 1,460 points or 1.75 per cent and Nifty by 440 points or 1.73 per cent in the four days of fall since July 9. Among Sensex firms, Asian Paints fell the most by 1.58 per cent. Tech Mahindra, Bajaj Finance, Infosys, HCL Tech, Tata Consultancy Services, Larsen & Toubro and Tata Motors were among the laggards. However, Eternal, Titan, Mahindra & Mahindra and ITC were among the gainers. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,104.22 crore on Friday, according to exchange data. The broader indices, however, outperformed the benchmark, with midcap and smallcap indices gaining between 0.71 per cent and 1.04 per cent. 'Consolidation continued in the domestic market as the tariff headlines and a subdued start to the earnings season are influencing investors to be more sensitive with valuation trading at 3 yrs high level,' Vinod Nair, Head of Research, Geojit Investments, said. However, stock-specific action continues with sector-wise pick-up in healthcare, realty, consumer & discretionary, while IT remains the laggard due to the risk of earnings downgrades in FY26, Nair added. An Indian commerce ministry team has reached Washington for another round of talks on the proposed bilateral trade agreement (BTA), which will begin on Monday, an official said. 'Markets started the week on a volatile note and extended their recent decline, ending nearly half a per cent lower. After an initial dip, the Nifty attempted to stabilize in early trade, but sustained pressure from heavyweight stocks dragged the index down as the session progressed,' Ajit Mishra – SVP, Research, Religare Broking Ltd, said. The BSE midcap gauge climbed 0.67 per cent and smallcap index edged higher by 0.57 per cent. BSE Focused IT dropped 1.07 per cent, IT by 0.99 per cent, teck by 0.79 per cent and industrials by 0.24 per cent. Realty surged 1.38 per cent, healthcare jumped 1.15 per cent, consumer discretionary (0.54 per cent), commodities (0.24 per cent) and power (0.24 per cent). As many as 2,137 stocks declined while 2,054 advanced and 149 remained unchanged on the BSE. In Asian markets, South Korea's Kospi, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled in the positive territory while Japan's Nikkei 225 index ended lower. European markets were trading in negative territory. The US markets ended lower on Friday. Wholesale price inflation (WPI) turned negative after a gap of 19 months, declining 0.13 per cent in June as deflation widened in food articles and fuel, along with softening in manufactured product costs, government data showed on Monday. Retail inflation slipped to a more than six-year low of 2.1 per cent in June mainly due to subdued prices of food items, including vegetables, pulses, meat, and milk. Global oil benchmark Brent crude climbed 0.99 per cent to USD 71.06 a barrel. PTI SUM MR MR This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Mint
5 hours ago
- Mint
HCLTech starts the year strong, but margins raise worry
HCL Technologies Ltd reported better-than-expected revenue in the June quarter and now sees full-year growth at 3-5% against 2-5% earlier, but the management lowering its full-year profitability by 100 basis points was a sore spot. On Monday, the country's third-largest information technology (IT) services company reported $3.55 billion revenue for the June quarter, up 1.34% sequentially. The performance exceeded expectations of 37 analysts polled by Bloomberg, who expected HCLTech to report $3.53 billion in revenue. This was its best first quarter in six years. HCLTech performed better than larger peer Tata Consultancy Services (TCS) in a lumpy first quarter because of its Europe business, and expects a stable FY26 despite lingering macroeconomic uncertainty. TCS ended the first quarter with $7.42 billion in revenue, down 0.59% sequentially. The Noida-headquartered company's management sounded confident. 'We observed that the environment remains stable from an overall perspective, with some variations across specific verticals. It also did not deteriorate as feared at the start of the quarter,' said C Vijayakumar, chief executive of HCLTech, as part of his prepared remarks during the company's post-earnings press conference on Monday. Vijayakumar's commentary is in contrast to TCS chief executive K. Krithivasan, who called out delays in decision-making and project starts with respect to discretionary investments. The HCLTech management narrowed its revenue guidance for the full year. The company now expects revenue growth between 3% and 5% in constant currency terms, higher than its 2% guidance on the lower end it had called out in April. Constant currency does not take currency fluctuations into account. While TCS's Krithivasan said that non-essential tech spending, which is crucial in boosting revenue of homegrown IT outsourcers, must be back once uncertainty lifts, Vijayakumar was optimistic of growth along expected lines. 'We are optimistic about meeting a revised guidance supported by our superior revenue growth and positive booking expectations for the upcoming quarters,' said Vijayakumar. For now, most of the company's incremental business of $47 million came from businesses based in Europe, which contributed 87% of it. HCL gets almost a third of its business from Europe. In terms of verticals, much of the incremental revenue came from banks and financial institutions, which makes up a little more than a fifth of the company's business and is its largest cash cow. HCLTech got $766 million from financial institutions last quarter. However, there were bigger causes of concern. The Noida-based IT outsourcer reported $450 million in net profit, down 9.3% sequentially. This was the company's second successive quarter of net profit decline. HCLTech's operating margins also raised concerns. Its profitability declined 160 basis points to 16.9% during the quarter. One basis point is a hundredth of a percentage point. The company even reduced its operating margin band to 17-18% for the full year as against its 18-19% target in April. Chief financial officer Shiv Walia called it one-time impact, attributing the drop to a bunch of factors, adding 'specialized hiring as well as skill and location mismatch and a one-off impact of customer bankruptcy' caused the margins to drop, among other smaller factors. While the software products business is historically its primary margin booster, operating margins for this vertical declined 190 basis points sequentially to end at 22.4% for the June quarter. Notably, HCLTech is one of the few large IT outsourcers that has a sizeable reliance on selling and licensing revenue of software products. Its revenue from its software business fell 4.6% on a quarterly basis to $330 million; still, the bigger impact of this arm is on the company's operating margins. Unlike TCS, HCLTech reduced headcount in the quarter. The company cut staff by 269 in the April-June 2025 period to end with 223,151, whereas TCS added 5,090 people in the first three months of the fiscal to end with 613,069 employees. Two of the country's three largest IT outsourcers adding headcount implies better signs ahead. More headcount in an IT services company means more demand for IT services and vice-versa. This increase in headcount comes on the backdrop of a tariff war started by US president Donald Trump coupled with geopolitical uncertainties. Both have put IT spends of large companies, many of whom count HCLTech as their IT vendor, in limbo. The company also highlighted a restructuring plan that was put in place. 'The restructuring consists of two components. One is a lot of facilities that we are not utilizing, mostly in locations outside India, is something which we believe we should optimize, because we have not been using some of these facilities, especially some of it related to our acquisitions,' said Vijayakumar. He also mentioned that the headcount would be cut because of the programme, in order to get to the company's 18-19% operating margin aspiration. 'The second is also that there will be some talent ramp-down that has happened, especially in some of the geographies outside India,' said Vijayakumar, adding that the upper end of its guidance factored a cost component to its restructuring programme. Like TCS, HCLTech did not call out orders or revenue from Gen AI, but announced a dividend of ₹ 12 per share. The company's shares fell 1.41% to close at ₹ 1,614 on Monday. The 30-share benchmark BSE Sensex index closed 0.3% lower at 82,253.46 points. The earnings were announced after market hours.
