Indian share markets continue to trade near the dotted line during the noon session. Pharma stocks and bank stocks witnessed majority of the buying momentum. Software stocks and FMCG stocks traded in red.
The BSE Sensex is trading lower by 37 points and the NSE Nifty is trading lower by 18 points. Meanwhile, the BSE Mid Cap index is up by 0.2% & the BSE Small Cap index is down by 0.3%. The rupee is trading at 64.43 to the US$.
Infosys share price was trading up by 1.3% in noon session after the company reported 3.33% quarter-on-quarter (QoQ) in June quarter net profit at Rs 34.83 billion, which was above the Rs 34.29 billion street profit estimates.
The company also raised its full-year revenue guidance, halting a streak of three consecutive quarters when the company was forced to slash its revenue growth outlook.
For the 2017-18 financial year, Infosys said it expects to grow revenues at 7.1-9.1%, up from the 6.1-8.1% range it had forecast in April. Infosys maintained its constant-currency revenue forecast of 6.5-8.5%. For the June quarter, Infosys’s dollar revenue came in at US$2.65 billion, growing 6% from last year.
Meanwhile, TCS share price was down 2% after the company posted 10% QoQ drop in June quarter net profit at Rs 59.50 billion, which was substantially below the Rs 62.03 billion profit estimate projected. This is the biggest drop in quarterly profit in two years.
As per an article in the Livemint, TCS is in a rut, with growth slowing almost every passing quarter. With market conditions being really unfavourable, the company desperately needs some imaginative leadership to get out of this rut.
Moving on to news from pharma sector. Biocon share price surged over 8.9% on the reports that the US Food and Drug Administration’s (USFDA) oncology drugs advisory committee had recommended approval of their biosimilar trastuzumab, indicated for treatment of breast cancer.
