Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 12.50 points at the opening bell.
On the macro front, India's industrial production improved at five months high pace of 4.3% in August 2017 over August 2016, while showing sharp improvement in growth from 0.9% increase in July 2017. The manufacturing sectors production improved 3.1% in August 2017, snapping decline in output for last two straight months. The electricity generation increased at improved pace of 8.3% and mining output also gained 4.3% in August 2017. The growth for July 2017 has been revised downwards to 0.9% from 1.2% reported earlier. The data was unveiled after market hours yesterday, 12 October 2017.
The all-India general consumer price index (CPI) inflation was flat at 3.28% in September 2017 compared with 3.28% in August 2017, after rising for last two months from 1.5% in June 2017. The data was unveiled after market hours yesterday, 12 October 2017.
The Election Commission (EC) yesterday, 12 October 2017, announced elections in Himachal Pradesh, but held off on making an announcement for Gujarat. Voting for the 68-seat Himachal Pradesh assembly will take place on 9 November 2017 and the results will be declared on 18 December 2017. Gujarat polls, Chief Election Commissioner (CEC) A K Joti reportedly said, will be announced later, but he added voting will wind up before Himachal results are declared. While Gujarat Assembly's term ends on 22 January 2018, Himachal Pradesh's finishes on 7 January 2018. The EC normally holds elections together in states where the incumbent governments are completing their five-year term within six months. The poll dates for these states are announced simultaneously.
Overseas, most Asian stocks were trading higher. Investors were cautious ahead of US and Chinese economic data as well as the Chinese Communist Party congress next week.
The US stock finished slightly lower on Thursday, even as Wall Street banks turned in generally upbeat results. The Dow Jones Industrial Average fell 0.14%. The S&P 500 shed 0.17%, while the Nasdaq Composite dropped 0.18%.
Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 668.13 crore yesterday, 12 October 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 872.54 crore yesterday, 12 October 2017, as per provisional data.
Among corporate news, TCS reported 8.57% rise in consolidated net profit to Rs 6460 crore on 2.67% rise in total income to Rs 31360 crore in Q2 September 2017 over Q1 June 2017. The result was announced after market hours yesterday, 12 October 2017.
TCS said that strong revenue growth was visible across verticals in the Q2 September 2017. With the exception of Retail and CMI, all industry verticals grew above the company average, led by Travel & Hospitality (up 8% Q-o-Q), Energy & Utilities (up 7.2% Q-o-Q) and Life Sciences & Healthcare (up 3.6% Q-o-Q). On a year on year basis, all industry verticals - with the exception of BFSI and Retail - grew above 9.5%.
Growth was led by Europe (up 5.3% Q-o-Q), Latin America (up 5.7% Q-o-Q), APAC (up 3% Q-o-Q) and UK (up 2.5% Q-o-Q). North America grew by 1.4% Q-o-Q with continued softness in Banking and Retail, TCS said.
Commenting on the Q2 performance, Rajesh Gopinathan, CEO and MD, said: the company experienced robust volume growth in Q2, driven by good demand across multiple industry verticals. Large deal wins this quarter, a good pipeline, and bottoming out of the retail sector softness positions the company well, Rajesh Gopinathan said.
Shares of Bharti Airtel and Tata Teleservices (Maharashtra) (TTML) will be watched. Telecom major Bharti Airtel and Tata, India's leading conglomerate, announced after market hours yesterday, 12 October 2017, that they have entered into an understanding to merge consumer mobile businesses (CMB) of Tata Teleservices (TTSL) and TTML into Bharti Airtel. The acquisition is subject to requisite regulatory approvals. As part of the agreement, Bharti Airtel will absorb Tata CMB's operations across the country in nineteen circles (17 under TTSL and 2 under TTML). These circles represent bulk of India's population and customer base.
The proposed merger will include transfer of all the customers and assets of Tata CMB to Bharti Airtel, further augmenting Bharti Airtel's overall customer base and network. The merger is being done on a debt-free cash-free basis, except for Bharti Airtel assuming a small portion of the unpaid spectrum liability of Tata's towards the DoT, which is to be paid on deferred basis. The employees of Tata will be demerged on the lines of the two businesses i.e. CMB and EFL (enterprise and fixed line and broadband), and post an optimal manpower planning will be moved accordingly. Tata will retain its stake in Viom, and will take care of the liabilities associated with it.
Key benchmark indices logged strong gains yesterday, 12 October 2017, led by index heavyweight Reliance Industries and bank stocks. The barometer index, the S&P BSE Sensex, surged 348.23 points or 1.09% to settle at 32,182.22. The Nifty 50 index surged 111.60 points or 1.12% to settle at 10,096.40. The Nifty attained 3-week closing high above the psychologically important 10,000 mark. The Sensex also settled at three-week high.
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