Tepid Q2 numbers pull down Sensex for 3rd day; IT falls again

Mumbai :Disappointing second quarter earnings from blue-chips so far and muted global cues dragged the benchmark BSE Sensex lower for a third consecutive session today with a fall of 66.87 points to 26,779.66 following TCS Q2 numbers failed to impress investors.

IT and Teck continue to bog market as TCS and Wipro with decline of 4.39 per cent and 0.47 per cent, respectively, kept the barometer index under pressure.

Globally, Asian markets fell after Chinese inflation data indicated more weakness in the world’s second-biggest economy, while European markets were also down.

“Weak Chinese macroeconomic data, falling of commodity prices and tumbling global indices dampened the sentiment of investors,” said Gaurav Jain Director of Hem Securities.

Besides, easing of WPI inflation numbers play uneventful for the benchmarks, he added.

Deflationary trend continued for 11th straight month with wholesale inflation remaining in the negative territory at (-)4.54 per cent in September, but the common man continued to reel under the burden of rising prices of pulses and onion.

After resuming lower at 26,760.32, the 30-share BSE Sensex hovered in a range of 26,869.08 and 26,713.28 before ending at 26,779.66 — showing a loss of 66.87 points or 0.25 per cent.

The index has now lost around 300 points in three days.

The 50-share NSE Nifty also dropped by 23.80 points or 0.29 per cent to close the day at 8,107.90 after shuttling between 8,096.35 and 8,139.30 intra-day.

Market sentiment, which was already muted on disappointing Q2 earnings by Infosys and TCS, got a further jolt after Hindustan Unilever reported a decline of 2.62 per cent in standalone net profit.

Shares of FMCG major HUL ended 1.85 per cent down at Rs 797.40 after company reported a decline of 2.62 per cent in its standalone net profit to Rs 962.24 crore.

Besides, TCS yesterday reported a 16 per cent surge in net profit to Rs 6,084.66 crore for the second quarter.

“TCS posted results below expectation on sales front and net profit,” said Sarabjit Kour Nangra, VP Research – IT, Angel Broking.

Asian and European stocks dropped as China’s inflation for September added to concerns about the health of the world’s second-biggest economy. Key indices from Asia, China, Hong Kong, Japan, Singpaore, South Korea and Taiwan fell in the range 0.03 per cent to 1.89 per cent.

European indices like France, Germany and the UK also fell between 0.76 per cent and 1.04 per cent.