MARKETS, ACCORDING TO MATHEW: TCS surpasses expectations

                                              By TC MATHEW

TCS has kicked off the first quarter with results that exceeded expectations. Despite this positive start, there is concern that the significant decline in US tech stocks overnight might affect local markets today. India's retail inflation data for June, expected this evening, is anticipated to rise from the previous month's 4.71% but remain below 5%. Meanwhile, a drop in US retail inflation to 3% has driven up gold prices.

Global markets

The Nasdaq index in the US fell nearly 2%, and this morning, Asian markets are also showing a downward trend. Despite several factors favouring a rise, it remains uncertain whether the market can withstand selling pressures. Recent days have seen selling pressures dragging the market down, but bulls are still hopeful.

Positive signals from European markets

The Gift Nifty closed at 24,458 on Thursday night and opened at 24,480 this morning, suggesting a positive start for the Indian markets today. European markets rose on Thursday, with the UK's GDP growing by 0.4% in May after stagnation in the previous month, leading to a rise in the British pound’s exchange rate.

Mixed results in US markets

Despite the relief from lower-than-expected US retail inflation, the decline of tech giants dampened the sentiment. Tesla dropped by 8%, and Nvidia by 5.57%. Other tech companies like Apple, Microsoft, Amazon, Alphabet, and Meta also saw declines. Consequently, the S&P and Nasdaq fell after seven consecutive days of gains, even after hitting record highs earlier in the day.

US futures and Asian markets

US futures show a slight increase today, with the Dow up by 0.07%, S&P by 0.05%, and Nasdaq by 0.07%. However, Asian markets are down, with Japan's Nikkei falling by 2.5% and Korea's index by 1.5%. The Japanese yen strengthened amid indications of intervention by the Japanese central bank in the foreign exchange market.

Indian markets

On Thursday, the Indian market initially rose but fell under selling pressure. The main indices closed with minimal losses, while the Bank Nifty, mid-cap, and small-cap indices rose. Realty, pharma, healthcare, and auto sectors saw losses, while oil and gas, consumer durables, FMCG, media, banking, and IT sectors gained.

The Sensex closed 27.43 points (0.03%) lower at 79,897.34, and the Nifty fell by 8.50 points (0.03%) to end at 24,315.95. The Bank Nifty rose by 0.16% (81.35 points) to close at 52,270.65. Mid-cap and small-cap indices also showed gains, rising by 0.40% and 0.69%, respectively.

TCS's Impressive Performance

TCS reported first-quarter results that were better than expected, with revenue rising by 5.4% and net profit by 8.7%. The operating profit margin increased to 24.7%, and the company announced an interim dividend of 10%. TCS added 11,000 trainees, increasing its workforce by 5,452, and bringing the total number of employees to 606,998. The company plans to hire 40,000 people this year. Although the annual results are strong, they are not as impressive as the previous quarter.

Gold Prices Surge

Gold prices surged past $2,400 on Thursday, driven by lower US retail inflation and the likelihood of a rate cut in September. Gold closed at $2,415.50 per ounce, rising by 1.6%. This morning, it dropped slightly to $2,409. In Kerala, gold prices rose by ₹160 to reach ₹53,840 per sovereign. The record high of ₹55,120 was noted on May 20.

Silver, dollar, rupee

Silver is priced at $31.31 per ounce, with the price in Kerala reaching ₹99,000 per kilogram. The dollar index fell to 104.44 on Thursday, slightly increasing to 104.49 this morning. The rupee weakened slightly to close at ₹83.56 per dollar.

Oil prices

Crude oil prices rose slightly, with Brent closing at $85.40 yesterday and rising to $85.45 this morning. WTI crude is $82.98, and UAE's Murban crude is $85.18. Industrial metals, except for zinc and tin, fell on Thursday. Copper dropped by 0.02% to $9,693.50 per ton, and aluminum by 0.34% to $2,475.40 per ton.

Cryptocurrency 

Cryptocurrencies fell after rising in the morning. Bitcoin dropped to $57,260 after reaching around $60,000. Ethereum fell to $3,090.

Market indicators

(As of July 11, 2024, Thursday)

• Sensex: 79,897.34 (-0.03%)
• Nifty50: 24,315.95 (-0.03%)
• Bank Nifty: 52,270.65 (+0.16%)
• Mid Cap 100: 57,148.25 (+0.40%)
• Small Cap 100: 18,919.65 (+0.69%)
• Dow Jones 30: 39,753.80 (+0.08%)
• S&P 500: 5584.54 (-0.88%)
• Nasdaq: 18,283.40 (-1.95%)
• Dollar ($): ₹83.56 (+₹0.04)
• Dollar Index: 104.44 (-0.61)
• Gold (ounce): $2,415.50 (+$43.80)
• Gold (sovereign): ₹53,840 (+₹160)
• Crude (Brent) Oil: $85.61 (+$0.53)