Sensex Opens Weak; Metal & Capital Goods' Stocks Lose The Most

Asian stock markets camped near 1.5-month highs today as market participants kept a wary eye on looming Chinese trade data on increasing signs of a slowdown. Shares in Hong Kong are lower today as the Hang Seng falls 1.7%. The Shanghai Composite is trading down by 0.6%. Meanwhile, Wall Street dipped slightly on Friday, as energy shares declined and investors looked ahead to earnings season, which kicks off next week with Citigroup, JPMorgan and other big banks.

Back home, India share markets opened on a weak note. The BSE Sensex is trading down by 177 points while the NSE Nifty is trading down by 57 points. The BSE Mid Cap index opened down by 0.6% while BSE Small Cap index opened down by 0.3%.

Barring IT stocks & healthcare stocks, all sectoral indices have opened the day in red with metal stocks and capital goods stocks witnessing maximum selling pressure.

The rupee is currently trading at Rs 70.53 against the US$.

IT stocks opened the day on a mixed note with Moser Baer India & HCL Infosys leading the losers. Infosys on Friday reported a 29.6% drop in consolidated net profit at Rs 36.1 billion for December quarter.

The IT firm had posted Rs 51.3 billion profit in the corresponding quarter last year.

Net sales for the quarter jumped 20.3% YoY to Rs 214 billion. On a sequential basis, sales grew 3.8% in rupee terms. Sales were up 2.7% QoQ in constant currency terms.

Further, the company revised its FY19 revenue guidance in constant currency (CC) terms to 8.5-9%. The guidance for operating margin (OPM) is retained at 22-24%.

Consolidated attrition declined to 19.9% in Q3FY19 over 22.2% in the previous quarter.

The company also announced a share buyback under open market route of Rs 82.6 billion at a maximum price of Rs 800 per share. It also announced a special dividend of Rs 4 per share.

Note that, Infosys had completed its maiden buyback of Rs 130 billion in December 2017, comprising 113-million equity shares at a price of Rs 1,150 per share.

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Disclosure: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. ...

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