Asian equities fell as fresh signs of slowing US inflation bolstered rate cut bets and spurred a rotation out of big tech stocks on Wall Street. The yen was volatile. Japanese shares fell more than 1%.

The S&P 500 and Nasdaq both fell Thursday (July 11), snapping a multiday run of records as investors pivoted towards underbought equities and away from artificial intelligence names.

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

Source: Equitymaster

At present, the BSE Sensex is trading 355 points higher and NSE Nifty is trading 109 points higher.

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

Maruti Suzuki, Asian Paints, and Britannia the other hand are among the top losers today.

Broader markets are trading on a positive note. The BSE Midcap index is trading 0.5% higher and the BSE Smallcap index is trading 0.6% higher.

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

The rupee is trading at Rs 83.54 against the US dollar.

In commodity markets, silver prices are trading 0.1% lower at Rs 73,250 per 10 grams today.
 

TCS Q1 Results

IT bellwether Tata Consultancy Services (TCS) on Thursday reported a 9% year-on-year growth in its June quarter net profit at Rs 120.4 bn (profit attributable to shareholders of the company), compared to Rs 111.2 bn profit reported in the same quarter last financial year.

However, consolidated profit for the period stood at Rs 121.1 bn.

The profit was higher than the Street estimate of Rs 119 bn. The company's board has also recommended a dividend of Rs 10 per share.

The company's revenue from operations stood at Rs 626.1 bn, which was a 5.4% increase over the Rs 593.8 bn posted by the company in the same period a year ago.

The interim dividend will be paid on Monday, 5 August 2024, to the equity shareholders of the company whose names appear in the records of the depositories as of Saturday, 20 July 2024, which has been set as the record date.

On a sequential basis, the PAT was down by over 3% compared to the Rs 125 bn reported by the company in Q4FY24.

The consolidated operating margin for the reported quarter stood at 24.7%, an expansion of 1.5% YoY, while the net margin stood at 19.2%.

Adani Wilmar to Acquire Stake in Omkar Chemicals

In a move aimed at expanding its footprint in the specialty chemical industry, Adani Wilmar Limited (AWL) on Thursday announced the acquisition of a 67% stake in Omkar Chemicals Industries Private Limited (OCIPL), a Gujarat-based specialty chemicals firm.

Adani Wilmar has signed a share purchase agreement with OCIPL for an enterprise value of Rs 562.5 m to be paid in cash.

OCIPL operates a manufacturing plant in Panoli, Gujarat, with an annual capacity of around 20,000 MT of surfactants and is planning to scale up its capacity.

AWL expects to close the deal in three to four months, and it doesn't need government or regulatory approvals.

In FY24, OCIPL reported a turnover of Rs 13.95 crore. Its plant commenced operations in FY24, and its capacity utilization was below 10 percent.

The specialty chemicals market presents a significant opportunity across diverse sectors such as home and personal care products, food additives, plastics and polymers, agrochemicals and lubricants, and petrochemicals.
 

Vodafone Idea Seeks Waiver

Debt-ridden Vodafone Idea has reached out to the Department of Telecom to seek a waiver on a financial bank guarantee worth Rs 247.5 bn for spectrum payment due in September 2025.

Vodafone Idea (VIL) needs to securitize the annual installment one year before the due date of the payment.

The payments are for frequencies that VIL purchased in auctions that were conducted before 2022.

VIL in 2022 opted for a four-year moratorium to pay for the spectrum allowed under a government relief package.

The moratorium period for the spectrum payment obligations related to spectrum auctions conducted until 2016 ends between October 2025 and September 2026.

The company also opted for a moratorium on AGR payments. The moratorium ends in March 2026.

VIL is required to provide bank guarantees at least 13 months prior to the expiry of the relevant moratorium period.

The company has cited relief based on the spectrum auction rules of 2022 and 2024 in which the requirement for providing bank guarantees for the annual installments has been removed.

VIL had outstanding dues of Rs 2,034.3 bn to the government as of 31 March 2024. The total outstanding includes deferred spectrum payment obligations of Rs 1,331.1 bn and AGR (adjusted gross revenue) liability of Rs 7,032 bn.

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