Asian shares were cautious on Friday as the escalating conflict in the Red Sea region sent oil prices surging, while slightly higher-than-expected US inflation data did not dent investors' views on early and aggressive rate cuts in the US and Europe.

The Nikkei index surged 1.2%, while Hang Seng was trading 0.3% higher. Meanwhile, the Shanghai index was trading 0.5% higher.

US stocks closed little changed on Thursday as news of hotter-than-expected inflation and signs of labor market strength dampened hopes for early interest rate cuts by the Federal Reserve this year, but a fall in Treasury yields kept declines in check.

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

Data Source: Equitymaster

At present, the BSE Sensex is trading 339 points higher and NSE Nifty is trading 91 points higher.

Infosys, Wipro, and TCS are among the top gainers today.

Cipla, Nestle, and Asian Paints on the other hand are among the top losers today.

Broader markets are trading on a positive note. The BSE Mid Cap is treading 0.2% higher and the BSE Small Cap index is trading 0.5% higher.

Sectoral indices are trading mixed, with socks in the media sector, realty sector, and IT sector witnessing the most buying. Meanwhile, stocks in the auto sector and power sector witnessed selling pressure.

The rupee is trading at Rs 83.05 against the US dollar.

In commodity markets, gold prices are trading 0.6% higher at Rs 62,170 per 10 grams today.

Meanwhile, silver prices are trading 0.6% higher at Rs 71,800 per 1 kg.
 

Nykaa Bulk Deal

Lexdale International is likely to sell 2.62 crore of Nykaa shares via a block deal at a total deal value of Rs 4.9 billion (bn).

Earlier in the month, FSN E-commerce, the parent company of Nykaa, said it saw consistent growth across its three business verticals in the December quarter, even as some impact on discretionary consumption was seen due to short-term pressures.

Nykaa also expects its Beauty and Personal Care (BPC) vertical to report a GMV (Gross Merchandise Value) growth in the mid-20s for the October-December quarter, while Net Sales Value growth is around 20% on a year-on-year basis.

The company said its BPC growth was ahead of that of the overall industry. However, the firm said industry growth slipped below the long-term trajectory but should revert to the median in the near to mid-term, given the strong macroeconomic and demographic outlook.

The firm has forecast its combined NSV of all BPC businesses to grow at low to mid-twenties on a YoY basis. As for the fashion vertical, GMV growth is likely to be around 40%, while NSV growth is expected in the low thirties.

For the quarter, at a consolidated level, Nykaa expects its NSV to grow in the mid-twenties and revenue to grow in the low twenties on a YoY basis.

Infosys Q3 Results

India's second-largest IT services company, Infosys, reported a 7.3% year-on-year (YoY) fall in net profit at Rs 61.1 bn in the third quarter of FY24. This is below Moneycontrol's poll estimates of Rs 62.4 bn.

On a sequential basis, the company's bottom line declined by 1.7%.

Q3 is a typically weak quarter for IT companies as the adverse impact from furloughs and fewer working days plays foul.

Infosys also narrowed its revenue growth guidance for the full year to 1.5-2% for the full year. This comes after it slashed the guidance last quarter to 1-2.5% from 1-3.5%.

Consolidated revenue for the quarter came in at Rs 388.2 bn, up 1.3% YoY.

In constant currency terms, the topline declined by 1%YoY.

The EBIT margin, or the operating margin, was down 0.7% to 20.5%, which was affected by furloughs and salary hikes. The company retained its operating margin guidance of 20-22%.

The IT major only reports the total contract value of its large deals and reported a TCV of US$ 3.2 bn, which is lower than last quarter's record of US$ 7.7 bn.

Infosys stands among beaten-down IT stocks and could potentially stage a comeback. 
 

LIC Receives IT Demand Notices

Life Insurance Corporation of India (LIC) on Thursday said tax authorities have slapped two demand notices aggregating to about Rs 35.3 bn on it.

The corporation has received orders from Income Tax authorities regarding Income Tax demand issued by the Assistant Commissioner of Income Tax, Mumbai.

LIC would file an appeal before the Commissioner (Appeals), Mumbai, against the said orders within the prescribed timelines.

There is no material impact on financials, operations, or other activities of the corporation, according to LIC.

LIC reclaims Rs 5 trillion market cap after shares hit an 18-month high. 

More By This Author: