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Market breadth turns weak; IT stocks trade firm

Published on Oct 19, 2021 10:23

The domestic equity barometers sharply pared gains in morning trade. At 10:21 IST, the barometer index, the S&P BSE Sensex, was up 80.11 points or 0.13% to 61,845.70. The Nifty 50 index added 23.90 points or 0.13% to 18,500.95.

In the broader market, the S&P BSE Mid-Cap index shed 0.59% while the S&P BSE Small-Cap index lost 0.55%.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1096 shares rose and 1954 shares fell. A total of 136 shares were unchanged.

COVID-19 Update:

Total COVID-19 confirmed cases worldwide stood at 241,115,485 with 4,905,196 deaths. India reported 183,118 active cases of COVID-19 infection and 452,454 deaths according to the data from the Ministry of Health and Family Welfare, Government of India.

A total of 98,63,51,204 COVID-19 vaccine doses have been administered in the country so far, with over 87.23 lakh doses being given yesterday, according to the Co-WIN dashboard.

Buzzing Index:

The Nifty IT index rose 2.58% to 37,241.75. The index has added 6.80% in four sessions.

Mphasis (up 6.42%), Coforge (up 5.87%), MindTree (up 3.11%), Tech Mahindra (up 2.71%), Wipro (up 2.61%), HCL Tech (up 1.63%), Infosys (up 0.71%) and TCS (up 0.68%) advanced.

L&T Technology Services jumped 7.04% to Rs 5,193.35, ahead of its second quarter earnings scheduled for release today.

Larsen & Toubro Infotech jumped 12.49% to Rs 6,643.25. The IT company reported an 11.1% increase in consolidated net profit to Rs 551.7 crore on an 8.8% rise in revenue to Rs 3,767 crore in Q2 FY22 over Q1 FY22. The IT firm`s consolidated net profit jumped 20.8% while revenues increased 25.6% in Q2 FY22 over Q2 FY21.

In US dollar terms, the revenue stood at USD $509 million; registering a growth of 8.3% QoQ and 25.8% YoY. Constant Currency revenue growth stood at 8.9% QoQ and 25.5% YoY.

The company said it added new clients during the quarter ended Q2 FY22. The total client base now stands at 463 active clients. The firm`s attrition rate was sharply higher at 19.6% in Q2 FY22 as compared to 15.2% in Q1 FY22 and 13.5% in Q2 FY21.

Stocks in Spotlight:

Tata Coffee jumped 4.14% to Rs 243.90. The company`s consolidated net profit jumped 26.55% to Rs 53.66 crore on a 0.56% increase in revenue from operations to Rs 546.52 crore in Q2 FY22 over Q2 FY21.

Edelweiss Financial Services rose 0.93% to Rs 81.75. The company said that Edelweiss Group has announced the divestment of its majority stake in Edelweiss Gallagher Insurance Brokers Ltd (EGIBL), post approval from the Insurance Regulatory and Development Authority of India (IRDAI).

Dixon Technologies (India) fell 1.41% to Rs 5672.45. The company said its wholly owned subsidiary- Padget and Orbic, a US based smartphone manufacturer has entered into agreement for manufacturing of smartphones at Padget`s manufacturing facility situated at Noida.

Smartlink Holdings added 2.92% to Rs 117.95. Synegra EMS, a wholly owned subsidiary company of Smartlink Holdings has received approval from the Government of India under the Production Linked Incentive (PLI) Scheme for manufacturing of Telecom and Networking Products in India under the MSME category.

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