Indian domestic equities started the trading session on a positive note but quickly transitioned to flat terrain following muted second-quarter (Q2) results from Tata Consultancy Services (TCS). The BSE benchmark Sensex initially gained 19.66 points, equivalent to a 0.03% increase, reaching 66,492.71. In parallel, the broader NSE Nifty 50 witnessed an uptick of 25.75 points, signifying a 0.13% rise to 19,837.10.
Morning session sees indices trading flat
As the morning session advanced, the key indices began to trade flat, with the Sensex marginally up by 8.46 points at 66,481.51. The Nifty also exhibited a minor uptick, hovering at 19,816.55, with a gain of 5.20 points.
TCS reports Q2 results, triggers stock decline
Tata Consultancy Services emerged as a significant factor affecting market sentiment during the opening session. TCS stock experienced a dip of approximately 1.50% after the IT services giant announced an 8.7% increase in net profit, amounting to INR 11,342 crore for the quarter ending in September. TCS further unveiled a share buyback program for up to 4.09 crore equity shares, with a total value not exceeding INR 17,000 crore.
Key stocks leading the decline
Notably, TCS, along with other prominent companies including Bharti Airtel, Dr. Reddy's, Tech Mahindra, Nestle India, Bajaj Finance, Cipla, Apollo Hospital, Divis Laboratories, SBI Life, Bajaj Finserv, and Infosys, were among the top contributors to the morning session's market downturn.
Asian markets rally as US shares extend gains
In the broader context of Asian equity markets, stocks commenced trading with enthusiasm. U.S. shares managed to sustain their upward trajectory for the fourth consecutive day, disregarding higher-than-expected wholesale inflation data.
Also read | TCS Q2 results: Net profit rises 8.7% to Rs 11,342
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