Stocks were battered again on Friday as concerns over weak corporate earnings in the third quarter (October-September) exacerbated after lower than expected numbers from software giant TCS.
Revenues of the software giant have been crimped because of uncertainties that have put a lid on technology spends in US and Europe.
Software rivals HCL Technologies, Wipro and Infosys will come out with their results next week — with the market hesitant to pin great hopes on their numbers. Market circles said that quarterly updates shared by various firms has not indicated any major uptick in urban demand during the October-December quarter.
In a volatile session, the 30-share gauge, which oscillated in an 820-point range between the high and low points, ended with losses of 241.30 points at 77378.91. This came after it hit a high of 77919.70 and a low of 77099.55. On the NSE, 95 points was clipped off the broader Nifty, which ended at 23431.50.
Brokers added that persistent FII sales and firm crude oil prices also impacted the stocks. While provisional numbers showed outflows to the tune of ₹2,255 crore, benchmark Brent crude came very close to the $80 per barrel mark when it was trading 3.95 per cent higher at $79.96 per barrel.
“India’s GDP growth is expected to fall to a four-year low of 6.4 per cent in 2025 compared with a 7.2 per cent uptick in 2023-24, leading to continued cautiousness in the market. Consolidation may persist in the near term, with investors closely watching today’s US non-farm payroll data for further guidance. Additionally, India’s CPI release on Monday will be a key factor,” said Siddhartha Khemka, head - research, wealth management, Motilal Oswal Financial Services.
“Despite the IT sector’s resilience following positive early third quarter results, broader indices bled due to uncertainties surrounding Trump policies and high valuations,’’ said Vinod Nair, head of Research, Geojit Financial Services.
There was no relief for the rupee, which was weighed down by rising crude oil prices. The domestic unit ended at a new record low of 85.96 against the dollar compared with its last close of 85.85.
“We think the balance of risks is tilted to the upside for the dollar as robust jobs figures could prompt markets to price out a March cut and potentially push the first fully-priced move beyond June,” ING Bank said in a note.
