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TCS falls on ‘client spending delays’; Sensex flat

business Updated: Sep 08, 2016 14:38 IST

TCS CMD N. Chandrasekaran. He had said in an analysts call in July after the company results were announced, that “so far, there is no negative news”.(AFP file)

Indian shares were flat in subdued trade on Thursday as better-than-expected Chinese trade data boosted shares such as Tata Steel while software exporter Tata Consultancy Services slumped to a six-month low after it said US financial sector clients were holding back on discretionary spending.

Asian shares held within one-year peaks on Thursday as Chinese trade data topped forecasts and imports recorded their first annual rise since late 2014.

However, trading back home was choppy after shares hit an 18-month high on Wednesday as foreign institutional investors net bought shares worth $6.30 billion so far in the calendar year.

“Markets have moved up significantly in recent days, so a bit of consolidation is happening at current levels. But I don’t expect any huge correction from current levels as liquidity remains supportive,” said Sudip Bandyopadhyay, chairman and managing director of Inditrade Capital.

The benchmark BSE Sensex was 0.16 higher at 28,972.12 as of 0545 GMT, after falling as much as 0.25% earlier in the session.

The broader NSE Nifty was barely up 0.06% at 8,923.48 after shedding as much as 0.23% earlier.

Tata Steel and Hindalco Industries rose 4% and 1.9%, respectively, tracking gains in global metal prices following positive Chinese data. Nifty metal index was trading 1.43% higher at 2,630 and is headed for its highest level since January 2, 2015.

Oil and Natural Gas Corp Ltd gained 2% after country’s biggest exploration company on Wednesday reported better-than-expected June-quarter profit.

Yes Bank Ltd fell 2.7% after India’s fifth biggest private sector lender by assets on Wednesday announced a share sale worth up to $1 billion in a bid to boost its capital base

Software exporter Tata Consultancy Services slumped as much as 6.4% and was last down 5.6% after the company said its financial sector clients in the US are holding back on discretionary spending.

Shares of other IT companies also fell, with Infosys and HCL Technologies dropping about 2% each.