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regular-article-logo Thursday, 03 October 2024

Sensex gains over 395 points to close at 52880

The earnings calendar for the first quarter of 2021-22 will kick off this week with Tata Consultancy Services declaring its numbers on Wednesday

Our Special Correspondent Mumbai Published 06.07.21, 03:12 AM
Representational image.

Representational image. Shutterstock

Optimism over Corporate India’s earnings saw the benchmark Sensex gaining over 395 points to close at 52880 on Monday.

The earnings calendar for the first quarter of 2021-22 will kick off this week with Tata Consultancy Services (TCS) declaring its numbers on Wednesday.

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“We expect healthy Q1 growth momentum on the back of seasonal strength (higher billing days and uptick in spending after budget allocation), with the US dollar revenue growth of 2.0-9.3 per cent quarter-on-quarter (QoQ) for Tier-1 companies,” analysts at Emkay said.

“Revenue growth momentum should sustain on the back of broad-based demand, strong deal wins, continued traction in digital and cloud, ramp-up of large deals and demand recovery in highly impacted verticals — travel, hospitality and manufacturing,’’ the Emkay analysts added.

The brokerage expects TCS to report a 32.6 per cent growth in its net profit at Rs 9,292 crore. Its topline is expected to show a rise of 20 per cent to Rs 45,936 crore. Dollar revenue is projected to show a sequential rise of 4 per cent.

According to the technology report of Motilal Oswal Financial Services, a median US dollar organic growth of 3.3 per cent (sequential in constant currency terms) during the quarter is expected for companies in its coverage.

Market circles added that the focus will also be on the guidance given by the companies. Infosys is expected to raise its revenue growth guidance from the current 12-14 per cent to 13-15 per cent. However, they caution that expectations are high and any disappointment could lead to a correction in these scrips.

Stocks were also boosted by a strong rupee on Monday. The 30-share Sensex opened at 52682.89 and hit an intra-day peak of 52919.17 after which it settled at 52880 — a gain of 395.33 points or 0.75 per cent. Similarly, the broader NSE Nifty surged 112.15 points or 0.71 per cent to 15834.35.

At the inter-bank forex markets, the rupee ended 43 paise higher at 74.31 against the US dollar. It opened at 74.51 against the greenback and rose to an intra-day high of 74.

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