Informist, Wednesday, Jul. 9, 2025

By Anjana Therese Antony

MUMBAI – Short bets were added to the options chain of Tata Consultancy Services Wednesday ahead of its likely muted earnings for the June quarter due Thursday. As there are no major changes in the macroeconomic environment, the company is likely to remain an underperformer compared to its mid-cap peers during the quarter, analysts said.

There are also worries that the risks associated with US tariffs would increase and would likely reflect in the growth of Indian IT companies, which earn a major chunk from the US. However, the management of many IT companies had said that they do not expect a major blow from tariffs and that they believe 2025-26 (Apr-Mar) will be better than the last financial year. 

The Mumbai-based IT behemoth's consolidated net profit for the latest quarter is seen falling 0.4% sequentially to INR 121.79 billion, and revenue is seen rising a mere 0.3% to INR 646.50 billion, according to the average of estimates from 14 broking firms. On a year-on-year basis, the bottom line is seen rising just 1% and the top line is seen increasing little over 3%. 

Shares of TCS ended 0.7% lower Wednesday at INR 3,383.80 on the National Stock Exchange, extending losses for the third consecutive session. The stock has fallen over 1% in the last seven days and 16% in 180 days. However, the stock's valuation is considered reasonable due to the company's growth prospects, some analysts tracking the IT giant had said. The near-term support for the stock is pegged at INR 3,360-INR 3,300, and resistance is seen at INR 3,440-INR 3,500. 

Traders added some bearish positions to the futures contract of Tata Consultancy, and the July series closed 0.7% lower at INR 3,387.80. Open interest increased by over 4% to 23.14 million. 

Tata Consultancy is usually the first large-cap company to release its earnings. Its results and management comments are closely monitored to identify the possible trends in the Indian IT sector. TCS has a 3.06% weightage in the Nifty 50, and its marginal fall Wednesday led to a decline of almost 5 points in the Nifty 50. The index ended 0.2% lower at 25476.10 points, and the BSE Sensex ended 0.2% down at 83536.08 points. 

The domestic equity market has been moving in a tight range this week in the absence of major triggers. Investors also refrained from placing aggressive bets due to persisting uncertainty around US tariff policies and no major update on trade talks with India. Foreign investors continue to hold major bearish positions. They have more than 72% short positions in index futures Tuesday, while the remaining are long. They added more than 4,300 short positions in index futures Tuesday and added over 900 long positions, a derivatives analyst said. 

--Nifty 50 Jul closed at 25550.00, down 61.90 points; 73.90-point premium to the spot index

--Nifty 50 Aug closed at 25656.10, down 72.30 points; 180.00-point premium to the spot index

--Nifty 50 Sep closed at 25807.00, down 62.70 points; 330.90-point premium to the spot index

Vedanta, Reliance Industries, BSE, ICICI Bank, Tata Consultancy Services, Dixon Technologies India, HDFC Bank, Asian Paints, Jio Financial Services, Infosys, Indian Energy Exchange, Bajaj Finance, HCL Technologies, Laurus Labs, Axis Bank, Bharat Electronics, Hindustan Unilever, Tata Steel, and Lupin were the most active underlying stocks Wednesday.  End

Edited by Saji George Titus 

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