July-September is usually a seasonally strong period for the IT industry, but analysts are not very hopeful of its year-on-year revenue growth momentum this year, as deal closures have been muted for most IT firms in an uncertain global environment. In fact, some analysts are expecting a deceleration in revenue growth for biggest IT exporter TCS. The outlook for the traditionally strong BFSI segment is also cautious. If the numbers are indeed tepid, the rally in IT stocks is bound to halt.
STREET PULSE: Where we stand Global stocks tumbled in early Asian trade on Thursday, on signs Washington and Beijing were still wide apart on trade issues and were making no progress in deputy-level talks.
Read More  | SGX Nifty traded nearly 61 points down at 7 am (IST), signalling weakness ahead on Dalal Street. MSCI index for Asia-Pacific shares outside Japan eased 0.31% while Japan's Nikkei slip 0.11%. |
| Dow and other major stock indices scored solid gains. Nasdaq rallied 1%, while the S&P500 rose 0.9% and the Dow 0.7%. |
Oil futures were mixed on Wednesday as a Turkey-launched offensive in Syria and hopes of progress in ending the US-China trade war supported oil, but a buildup in US crude inventories held prices back. Brent crude settled at $58.32 a barrel, up 8 cents, while WTI crude settled 4 cents down at $52.59.
Read More | LOOK WHO'S |  |
Telecom Turnaround… Reliance Jio has started charging for voice calls made to subscribers of other telcos to account for the termination charges it pays its rivals Bharti Airtel and Vodafone Idea, a move which some analysts say can possibly herald a tariff rise in the telecom sector after years of brutal competition. In a statement, the Mukesh Ambani-led telco, which had promised to keep all voice calls free, said it was "compelled" to start charging its over 350 million users to recover the 6 paise a minute interconnect usage charge it pays to other telcos, till the regulator brings the fee down to zero.
Read More Dovish Fed… Most Federal Reserve policymakers supported the need for an interest rate cut in September, minutes of the central bank's last policy meeting showed, but they remain increasingly divided on the path ahead for monetary policy. The readout of the meeting, released on Wednesday, also showed that the Fed agreed it would soon need to discuss whether to increase the size of its balance sheet following ructions in short-term money markets.
Read More | WHO'S |  |
No to LVB Merger… RBI has rejected the planned merger between Indiabulls Housing Finance and Lakshmi Vilas Bank after examining the proposal for more than six months, during which multiple approaches were considered to ensure compliance with strict banking sector takeover rules. A customary filing by LVB to stock exchanges didn't give reasons for the proposal's rejection. Gagan Banga, Indiabulls Housing Finance vice chairman, said it appears that RBI saw the move as a backdoor entry into banking. ED Ajit Kumar Mittal said he didn't expect any negative reaction from investors to the decision. The rejection raises fresh concerns at NBFCs that are struggling to raise funds after last year's IL&FS crisis.
Read More India Slowing… The IMF has flagged a 'more pronounced' slowdown in India as it called for a coordinated response to arrest the 'synchronised slowdown in global growth'. In her first speech as MD of the IMF, Kristalina Georgieva said 90% of the world is likely to have slower growth in 2019. "In some of the largest emerging market economies, such as India and Brazil, the slowdown is even more pronounced this year," she said in her inaugural address in Washington DC on Tuesday.
Read More Meanwhile...Three public-sector lenders — Bank of Baroda, Union Bank of India and Syndicate Bank — have taken the first steps in transparently segregating retail loans into their own versions of prime and subprime risk exposure, using third-party credit scores of potential borrowers to offer them different home-financing rates. Under the new external benchmarking regime, banks will be using three credit score slabs from the Credit Information Bureau (India) Ltd (Cibil) to price new home loans.
Read More 
Buy
No comments:
Post a Comment