India’s benchmark indices dipped on Friday, led by a decrease in IT company Infosys and private lender Axis Bank following their quarterly results. The Nifty 50 declined 0.35% to 23,229.1 points at 10:05 a.m. IST, while the BSE Sensex fell 0.45% to 76,699.08.
Axis Bank
Axis Bank Limited, founded in December 1993, is a private sector bank.It has the third-largest branch network among private sector banks, as well as a worldwide presence with branches in DIFC (Dubai) and Singapore, representative offices in Abu Dhabi, Sharjah, Dhaka, and Dubai, and an offshore banking business in GIFT City. Axis Bank lost 3.25 percent as its quarterly profit fell short of market expectations due to slower loan growth and an increase in provisions for bad loans.
Infosys
Despite increasing its revenue projection, Infosys saw a 4.5% decline and reported early indications of a rise in its U.S. clients’ discretionary expenditure. To help clients implement plans for their digital transformation, Infosys Ltd. offers technology, outsourcing, consulting, and next-generation digital services.[1] It ranks second in terms of size among Indian IT companies, after TCS.
The other major underachievers in the group were Tata Consultancy Services, HCL Tech, IndusInd Bank, and ICICI Bank. On the other hand, Reliance Industries’ stock rose more than 2% following the company’s announcement of a 7.4% increase in net profit for the December quarter. This was due to a recovery in retail, a spike in telecom profits due to increased tariffs, and steady performance from its core oil and petrochemicals businesses.
“The market has two advantages today: One is that U.S. bond yields and the dollar index are still on the down. Second, the big boys, RIL and Infosys, have better-than-expected Q3 earnings. “The market may see a slight comeback led by these two stocks. The US bond yields and the decreasing dollar index are both favorable, but they are insufficient to stop FIIs’ persistent selling. As a result, any notable market rebound will be traded into,” stated V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
