A divergent trend was witnessed in mid-morning trade as the barometer index, the S&P BSE Sensex, was trading with small gains while the Nifty 50 index was hovering with small losses. At 11:28 IST, the barometer index, the S&P BSE Sensex, was up 21.44 points or 0.06% at 35,181.80. The Nifty 50 index was off 7.60 points or 0.07% at 10,731.75. IT stocks declined.
Domestic stocks edged higher in early trade as trading resumed after a holiday yesterday, 1 May 2018, on account of Maharashtra Day. Stocks erased early gains and hit intraday low in negative zone in morning trade.
The S&P BSE Mid-Cap index was off 0.31%. The S&P BSE Small-Cap index was off 0.02%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,165 shares fell and 1,109 shares rose. A total of 111 shares were unchanged. Breadth was strong in early trade. It turned negative from positive in morning trade
ICICI Bank (down 2.39%), Tata Steel (down 1.67%) and SBI (down 1.64%) edged lower from the Sensex pack.
IT stocks declined. TCS (down 1.01%), Infosys (down 0.94%), Wipro (down 1.09%), Oracle Financial Services Software (down 0.12%), Tech Mahindra (down 1.72%), MindTree (down 2.43%) and Mphasis (down 1.32%) fell. Hexaware Technologies (up 0.03%) rose.
HCL Technologies lost 3.65%. The company's consolidated net income rose 1.5% to Rs 2227 crore on 2.9% increase in revenue to Rs 13179 crore in Q4 March 2018 over Q3 December 2017. The result was announced before trading hours today, 2 May 2018.
On a consolidated basis, net income rose 3.8% to Rs 8780 crore on 8.2% increase in revenue to Rs 50570 crore in the year ended March 2018 over the year ended March 2017.
HCL Technologies expects its FY 2019 revenues to grow between 9.5% to 11.5% in constant currency. In FY 2019, operating margin (EBIT) is expected between 19.5% to 20.5%.
Overseas, most Asian stocks fell as investors await the Fed's view on interest rates, inflation, and the economy. The US Federal Reserve began a two-day meeting yesterday, 1 May 2018. The central bank is reportedly likely to hold interest rates steady but will likely further encourage expectations that it will lift borrowing costs in June on the back of rising inflation and low unemployment.
The Fed raised its benchmark overnight lending rate at its March 20-21 meeting by a quarter percentage point to a target range of between 1.50% and 1.75%. It currently forecasts another two rate rises this year, although an increasing number of policymakers see three as possible. The Fed's next policy meeting is scheduled for 12-13 June.
Meanwhile, US President Donald Trump late Monday gave top allies - the European Union, Canada and Mexico - an extension to the tariff exemption to allow more time negotiate a new pact to avoid the levies. The tariffs of 25% on steel and 10% aluminum- already in effect against China, Russia, Japan and others - were slated to come into effect on 1 May 2018, but have now been pushed back to 1 June 2018.
US stocks closed mostly higher yesterday, 1 May 2018 as a sharp rally in technology stocks helped the S&P 500 and the Nasdaq shake off an early decline. However, the Dow fell for a third straight session as caution remained high ahead of the conclusion of a Federal Reserve policy meeting and fresh developments in global trade.
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