Mumbai: After a bright start, the Indian stock market drifted lower and slipped into negative territory this morning.
The Sensex, which advanced to 27,459.75 in early trades, gaining more than 200 points in the process, declined to 27,143.07 around mid morning and is currently up 8.98 points at 27,256.14. The Nifty50 of the National Stock Exchange is down 5.75 points or 0.07% at 8401.145. Earlier, after rising to 8461.05, the Nifty had eased to 8373.65.
In the currency market, the rupee opened at 68.16 against the U.S. dollar, down 7 paise from its previous close. The rupe is currently trading at 68.24 a dollar.
Axis Bank is up 3%. GAIL India (2.5%), HDFC (2.3%) and Aurobindo Pharma (2.1%) are also up sharply.
Tech Mahindra, ONGC, Sun Pharmaceutical Industries, Reliance Industries, Hindustan Unilever, Lupin and BHEL are up 1% - 2%.
Hindalco, Tata Motors, Idea Cellular, Tata Motors DVR, UltraTech Cement and NTPC are down 1% - 2%.
Strong results from IT majors Tata Consulancy Services and Infosys, and encouraging data on industrial output and retail inflation aided sentiment early on in the session. But stocks faced stiff resistance at higher levels due to concerns about near term economic outlook.
Tata Consultancy Services advanced to Rs 2368 in early trades, gaining more than 1%, but changed direction soon thereafter to drop to around Rs 2251 and is currently trading at Rs 2268, down 3.2% from its previous closing price.
Tata Consultancy Services posted consolidated net profit of Rs 6778 crore in the quarter ended December 2016, up 2.9% over the quarter ended September 2016. Revenue was up 1.5% to Rs 29,735 crore in the third quarter. The results are as per International Financial Reporting Standards. The company's consolidated revenue in constant currency grew 2% in the December 2016 quarter, over the preceding quarter.
Infosys spurted to Rs 1045 in early trades, gaining more than 4%, on results. However, with traders pressing sales subsequently, the stock declined to Rs 964 and is currently trading at Rs 982, down 1.7% from Thursday's closing price.
Infosys' consolidated net profit rose 2.8% to Rs 3708 crore on 0.2% decline in revenue to Rs 17,273 crore in the December 2016 quarter, compared to the preceding quarter. The company's consolidated revenue in constant currency terms declined 0.3% in the December 2016 quarter, from a quarter earlier.
Infosys has revised revenue growth guidance for the current financial year In constant currency terms, the company expects revenue to grow by 8.4% to 8.8% for the year ending 31 March 2017. Earlier, Infosys had forecast 8% - 9% growth in revenue for the fiscal in constant currency terms. At the beginning of this financial year, the company had estimated its revenue growth at 11.5% - 13.5%.