Asian share markets are trading higher today as a surprisingly low reading on US inflation stoked speculation the end of the post-pandemic tightening cycle is in sight.

The Nikkei is trading 1.6% higher, and the Hang Seng index is trading 2.5% higher. While Shanghai Index is trading higher by 0.9%.

US stocks advanced on Wednesday and the dollar and Treasury yields fell after new US inflation data showed a slowdown in the seemingly relentless rise of consumer prices.

The Dow Jones Industrial Average ended 0.3% higher, and the tech-heavy Nasdaq Composite ended 1.2% higher.

Here's a table showing how US stocks performed on Wednesday:

Data source: Equitymaster

Back home, Indian share markets are trading higher today.

At present, the BSE Sensex is trading higher by 618 points. Meanwhile, the NSE Nifty is trading up by 179 points.

TCS and Hindalco are among the top gainers today.

Coal India and UPL on the other hand are among the top losers today.

Broader markets are trading on a positive note. The BSE Mid Cap index is trading 0.4% higher and the BSE Small Cap index is trading 0.6% higher.

Barring the power sector all other sectoral indices are trading on a positive note with stocks in the IT sector, realty sector, and metal sector witnessing the most buying.

Shares of MRF and ABB India hit their 52-week high today.

The rupee is trading at Rs 82.01 against the US dollar.

In commodity markets, gold prices are trading higher by 0.2% at Rs 59,274 per 10 grams today.

Meanwhile, silver prices are trading 0.4% higher at Rs 73,865 per 1 kg.
 

Promoter Ajay Singh to infuse Rs 5 bn in SpiceJet

SpiceJet will receive a fresh capital infusion of Rs 5 billion (bn) from its promoter Ajay Singh, offering a lifeline to the financially-beleaguered budget airline. Singh will infuse the funds by subscribing to fresh equity shares and/or convertible instruments.

The decision was made at SpiceJet's board meeting on Wednesday to consider various options to raise funds either by selling shares or convertible securities on a preferential basis or both.

The airline company, which is struggling due to poor finances, has yet to declare earnings for the March quarter and for the financial year 2023.

SpiceJet said the decision is subject to approval from shareholders, Sebi, and any other concerned competent authorities.

As the fundraising will be considered an equity contribution by the promoters, SpiceJet will also be entitled to additional credit facilities of Rs 2.1 bn under the Emergency Credit Line Guarantee Scheme (ECLGS) of the government.

While funds through ECLGS will be used to resume flights of grounded planes, the fund infusion from Singh could be used to add Boeing Max planes.

SpiceJet said it is already utilizing US$ 50 million (m) funds under the ECLGS scheme. Two of its grounded aircraft, a Boeing 737 and a Q400, have been operationalized so far, and more planes are expected to rejoin the fleet soon. The airline currently has a fleet of around 55 aircraft and 23 of those are grounded.

SpiceJet, which has been facing various headwinds, has settled the issues with certain aircraft lessors. Due to all the headwinds SpieceJet share price was in trouble.

In 2023 so far it is down 23.4%.

TCS Q1 results

Tata Consultancy Services (TCS) on Wednesday reported a 16.8% year-on-year rise in its consolidated net profit for the financial year's first quarter (Q1FY24) to Rs 110.7 bn.

The company had reported a profit of Rs 94.8 bn in the year-ago period. Sequentially, the consolidated net profit was down 2.8%.

The IT company's consolidated revenue from operations stood at Rs 593.8 bn Q1FY24 from Rs 527.6 crore in Q1FY23. Sequentially, up 0.4% from Rs 591.6 crore in Q4FY23.

The company's consolidated total income for the quarter ended June surged 13.5% year-on-year to Rs 60,778 crore and sequentially rose by 0.7%.

The company's operating margin decreased from 24.5% in Q4FY23 to 23.2% in Q1FY24, a 130 basis point decline. It increased merely 0.1% year over year.

TCS' order book reached UD $ 10.2 bn in the first quarter of FY24. In constant currency terms, revenue grew by 7% year over year, while the company's attrition rate for the period was 17.8%.

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