BSE Sensex, NSE Nifty were trading flat ahead of TCS’ Q4 results with analysts expecting a weak set of numbers from the IT major.
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The BSE Sensex was trading 0.43 points lower at 22,484.50 points, while the NSE Nifty was trading marginally higher at 6,738.05 points at 10.30 am IST.
Experts highlight that the management hinted at decline in revenues at its mid-quarter analyst meet last month.
“We expect 2% q/q USD revenue growth for TCS for the Mar-14 quarter. At its quarterly analyst meeting, management highlighted that sequential revenue growth in Q4FY14 was likely to be weaker than Q3FY14 (in constant currency, 2.1% cc growth in Q3) due to a decline in India revenues. We expect a c30bps q/q decline in its EBIT margin as we believe that operational improvements likely offset some of the impact of reinvestments,” Barclays said in a recent note.
Among sectoral indices, the BSE IT (-1.76%), BSE Capital Goods (-0.24%) and BSE Realty (-0.2%) were the major losers. Among individual stocks, Infosys (-2.80%), TCS (-1.83%) and HDFC (-1.03%) were the major losers on the 30-share Sensex.
Most Asian indices were trading in the green. The Nikkei (2.67%), Hang Seng (0.63%), Kospi (0.09%), Straits Times (0.20%) and Shanghai Composite (0.26%) were the major gainers.
