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Equity Alert: IT stocks fall amid rumours of US considering tariff on IT svcs

MUMBAI--1231 IST--All information technology stocks were in the red, with the Nifty IT being among the worst-hit sectoral indices. Persistent Systems, Mphasis, and Tata Consultancy Services were down 2-3?ter rumours suggested that US President Donald Trump may look to impose tariffs on Indian IT services exports. At 1229 IST, the Nifty IT was down 1.6% at 34583.90 points.

Reports attributed to Bloomberg were circulated Friday, which indicated that Trump plans to impose tariffs on India's IT sector. However, Bloomberg denied the report when CNBC-TV18 reached out to it. Redbox Global, which first reported this citing a Reuters story, later issued a clarification, saying that the reports were not from Reuters but from opinions and discussions held by a local news channel, the CNBC-TV18 report said. The Nifty IT had fallen over 2% post the initial reports but later came slightly off lows post the clarification.

Another factor weighing on the sector may be the dissapointing fourth quarter earnings and guidance by UK-based IT major Endava. Its fourth-quarter results fell short of market expectations, and the company also said its constant currency revenue growth in the first quarter will be a (-)6% to (-)5%. The rapid changes in artificial intelligence systems has resulted in clients holding back their large spends, leading to slower conversions, CNBC-TV18 reported. (Akash Mandal)

Equity Alert: Most FMCG cos fall after Thursday's gains on GST reforms

MUMBAI--1226 IST--Most fast-moving consumer goods stocks fell after Thursday's gains on the back of the GST Council lowering taxes on most daily-use consumer goods. Investors booked profits at higher levels Friday. Lower GST rates announced Wednesday are expected to revive consumption partially, but any sharp growth in volume is unlikely, analysts said.

The sharp, broad-based reduction in the GST rates of most food and key personal care categories could partially revive consumption, which has been affected in the past 2–3 years. The inflation in commodity prices had weakened demand and rose more than the income growth of households, Kotak Institutional Equities said in a report.

The brokerage expects the government to increase the National Calamity Contingent Duty or introduce a new tax, such as health cess, to keep aggregate taxation on cigarettes broadly unchanged. "Most FMCG stocks have run up in the past two weeks and are partly pricing in GST rate cuts," Kotak Equities said. The brokerage expects moderate upside from current levels.

The Nifty FMCG has closed higher for five consecutive sessions and risen nearly 3% during this period. The index has risen nearly 5?ter Prime Minister Narendra Modi announced potential reforms in the GST structure as a "Diwali Gift" in his Independence Day speech.

At 1204 IST, the Nifty FMCG was at 56160.05, down 944 points or 1.7%. It was the biggest loser among sectoral indices. Barring Tata Consumer Products, all 14 constituents of the Nifty FMCG were in the red. The GST Council did not announce any tax reductions on tea, coffee, and salt, which are the major selling products of Tata Consumer. The stock had fallen over 3% Thursday. (Simran Rede)

Equity Alert: Indices down on sharp decline in IT cos; FMCG stocks fall more

MUMBAI--1220 IST--Benchmark indices fell after opening higher Friday amid a sharp fall in information technology stocks on talks that the US may consider tariffs on IT service companies. While shares of automobile and select retail companies rose, those of fast moving consumer goods companies fell further, and several information technology, financial services companies, and banks slipped into the red.

At 1215 IST, the Nifty 50 index was at 24653.65 points, down 0.3?ter opening 0.3% higher. The BSE Sensex was at 80430.51 points, down 287 points or 0.4%. Shares of information technology companies Infosys, Tata Consultancy Services, and HCL Technologies fell 1-2?ter they opened the session higher.

Shares of ITC were down more than 2?ter gaining in the previous three sessions, during which they rose 2.5%. Among other FMCG companies, Nestle India was down 1%. Shares of automobile companies Mahindra & Mahindra, Eicher Motors, and Maruti Suzuki were up 1.3-2.5%, extending their intraday gains. Eicher continued its winning streak for the fifth consecutive session.

Shares of Eternal rose 2?ter brokerage Motilal Oswal Financial Services maintained a 'buy' rating with a target price of INR 420, reiterating a bullish view on the stock. Shares of Swiggy were up 2?ter Motilal Oswal upgraded the stock to 'buy' from 'neutral' and raised the target price to INR 560 from INR 450.

Syrma SGS Technology was up 3?ter the Andhra Pradesh Cabinet cleared a proposal by the company and its joint ventures to set up a printed circuit board, copper clad laminate plant, and an electronics manufacturing unit with an investment of INR 15.95 billion, according to the Hindu BusinessLine newspaper. (Eshitva Prakash)

Equity Alert: BSE up 5%; options turnover rises on Thu weekly expiry shift

MUMBAI--1130 IST--Shares of BSE rose over 5% to INR 2,334.30 after the exchange's average daily options premium turnover on Thursday almost doubled to INR 492.65 billion compared to the previous Aug. 26 expiry for its derivatives contract. The BSE options contracts' expiry shifted to Thursday from Tuesday from this week. Analysts had expected the average turnover on the expiry day to fall post the shift. At 1127 IST, the stock traded 4.6% higher at INR 2,321.70.

Goldman Sachs had earlier said BSE's market shares may fall by 3% and had forecasted a 2% cut in 2025-26 (Apr-Mar) earnings per share estimate due to the shift, according to a report by Business Standard newspaper. The brokerage, alongside analysts from other firms, had expected NSE to size this market share.

The shift is significant as NSE will now get three working days before its weekly expiry, allowing traders more time to place their positions and potentially resulting in a higher turnover. On the other hand, BSE will now get only two working days before expiry.

At 1127 IST, 4.59 million shares of the company were traded on the NSE, sharply higher than the 1.74 million shares till the same time Thursday. (Akash Mandal)

Equity Alert: Eternal at record high, Swiggy rises on bullish brokerage view

MUMBAI--1019 IST--Shares of Eternal rose over 2% to an all-time high of INR 333.20 after brokerages reiterated their bullish views on the food delivery ecosystem. Swiggy also rose over 2?ter brokerage Motilal Oswal Financial Services upgraded the stock to 'buy' from 'neutral' and raised the target price to INR 560 from INR 450. At 1017 IST, shares of Eternal were up 1.8% at INR 332, while those of Swiggy were up 1.3% at INR 428.40.

The food and quick commerce industry, which faced multiple headwinds over the last few months, is seeing a turnaround cycle, CNBC-TV18 reported Motilal Oswal as saying. The food delivery growth, which stunted between 17% and 18%, is likely to accelerate beyond 20% over the next two to four quarters, it added. The brokerage also sees discretionary spending rebounding on the back of the goods and services tax reforms, which could also lead to an increase in dining out and at-home delivery trends. This, in turn will boost platform order volumes and order frequency. Motilal Oswal maintained a 'buy' rating on Eternal with a target price of INR 420. The brokerage also brought forward its profitability assumptions for Instamart and Blinkit due to easing competitive intensity, moderating dark store expansion, and declining customer acquisition costs.

Morgan Stanley also spoke on similar lines. The brokerage expects competitive pressure to abate in quick commerce sector. This, alongside growth acceleration in food delivery, and optionality value in new businesses will aid growth for the sector, NDTV Profit reported the brokerage as saying. (Akash Mandal)

Equity Alert: Indices up on global cues; investors likely book profits in FMCG

MUMBAI--0945 IST--Benchmark indices opened higher Friday, buoyed by positive cues from global markets. The US market closed sharply higher Thursday as higher than expected jobless claims boosted hope of a 25 basis-point rate cut by the US Federal Reserve. However, the gains were thin across the board despite strong global cues and the announcement of GST rate cuts late on Wednesday.

At 0944 IST, the Nifty 50 was at 24779.15, up 44.85 points or 0.2% and the BSE Sensex was at 80855.11, up 137.10 points or 0.2%. The broader market outperformed benchmark indices and was up 0.3-0.4%. The India VIX, the fear gauge of the market, was lower for the third consecutive session and at 0944 IST, it was at 10.5550, down 2.7%.

Barring the Nifty FMCG and Nifty Bank, all sectoral indices were in the green. Investors booked profits in fast-moving consumer stocks after the sharp rise Thursday on the back of some surprising GST rate cuts announced in the sector. The Nifty FMXG was down 1.3%. The Nifty Auto continued its upward journey for the second session after the government reduced taxes on most verticles. The Nifty Auto was up 1.2% and was the top gainer in the pack.

Shares of Ola Electric were down 5%, the worst hit in the Nifty 200. SVF II Ostrich (DE) LLC, an investment arm of Japan-based SoftBank, sold 94.94 million shares or 2.15% stake in the company in the open market between Jul. 15 and Sept. 2. This hit sentiment around the stock, which had seen a strong uptrend in past few sessions, rising around 50%.

Max Financial Services was up over 2% and was among the top gaining Nifty 200 constituents. The company sees an impact of less than 1% on its subsidiary Axis Max on its embedded value from the GST rate cut. The GST cut on life insurance is expected to improve affordability for consumers, the company said.

ITC was down over 2%, the biggest loser in the Nifty 50. The government announced that tax on cigarettes will be increased to 40% from 28%. "Pan Masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi will continue at the existing rates of GST and compensation cess where applicable, till loan and interest payment obligations under the compensation cess account are completely discharged," the press release on GST cut said. (Simran Rede)

Equity Alert: Nifty 50, Sensex likely to rise on hope of rate cut in US

MUMBAI--0813 IST--Benchmark indices are likely to open higher Friday amid positive cues from global markets, as hope of cut in US interest rates lifted equities. However, high valuations, growth concerns due to tariffs, and outflows from foreign investors are likely to keep the gains in check.

US equity indices rose 0.8-1% overnight after weak jobs data made market participants more or less sure that the US Federal Reserve will cut its key interest rate by 25 basis points in its September meeting. US jobless claims for the week ended Saturday came in slightly higher-than-expected at 237,000 claims.

Post this, the S&P 500 Thursday closed at a record high of 6502.08 points, having gained over 10% so far in 2025. Asian markets also rose Friday with indices in Japan, Taiwan, China, and Hong Kong gaining 0.5-0.9%.

The futures contract of the GIFT Nifty showed the Indian market is also likely to rise tracking gains from global markets. At 0744 IST, the September contract of the GIFT Nifty traded largely flat at 24887.50 points, but up 0.6% from Nifty 50's close on Thursday. The Nifty 50 had closed marginally higher at 24734.30 points on Thursday. Technical analysts expect the 50-stock index to face resistance at 25000 points and find support at 24650-24400 points.

Post the weak jobs report, yields on 10-year bonds in the US fell 5 basis points to settle at 4.17%. The CME Fedwatch tool now showed a near 100% probability of a 25 bps rate cut by the US Fed in its meeting on Sept. 17. Hope of rate cuts in the US may aid information technology stocks in India Friday.

Analysts said equities have priced in the goods and services tax cuts, announced late Wednesday, as most of it was known to market participants who had already bought consumption-related stocks in the run-up to the 56th GST Council meeting. Going forward, these stocks are unlikely to see major gains until the GST cuts translate into higher volumes during the festival season. The Nifty Auto, Nifty Consumer Durables, and the Nifty FMCG, have already gained 8%, 7%, 4.5%, respectively since Prime Minister Narendra Modi first announced the GST rejig plans in his Independence Day speech. (Anshul Choudhary)

Equity Alert: Nuvama says GST cuts unlikely to stall earnings downgrades

MUMBAI--0803 IST--The GST cut across sectors is welcome for the equity market but is unlikely to stall earnings downgrades due to strong global headwinds, which will impact two-thirds of the top 500 stocks on the BSE, Nuvama Institutional Equities said in a report. "...with profit margins at record highs and economic cyclicality reducing (as capex intensity moderates), a defensive bias is warranted," the brokerage said.

It said the GST cut would hit the government's revenues modestly at 0.2% of GDP, but sees the removal of compensation cess turning the fiscal impulse from negative to neutral in 2025-26 (Apr-Mar) and expansionary at 0.5% of GDP in FY27, assuming no further fiscal consolidation. The government may resort tp spending cuts to meet its FY26 fiscal targets. "This could partially offset external headwinds, although it remains to be seen how much of a multiplier effect can cess removal on luxury/sin goods generate," the brokerage added.

Nirmal Bang Equities sees the government's revenue loss at around INR 2 trillion or 0.5% of GDP on an annualised basis, when taking loss of revenue from compensation cess into accrount. This is far higher than the government's revenue loss estimate at 0.2% of GDP. "The GDP impact is likely to be between 15bps at the lower end and 50 bps at the upper end in FY26," the brokerage said in its report.

"We see consumer durables, automobiles (two wheelers and tractors), hotels, and food delivery players as significant beneficiaries of the continued K-shaped growth albeit there is no material benefit accruing for the latter two segments as a result of the GST cuts," Nirmal Bang added. (Akash Mandal)

Equity Alert: Most Asian mkts up; chipmakers gain on Trump's tariff comments

MUMBAI--0747 IST--Most indices in Asia were higher in early trade Friday, with sentiment buoyed by the US signing an executive order formalising a lower Japanese automobile import tariff of 15% from the earlier 27.5%. The order also formalised an agreement for Japan to invest $550 billion in US projects.

Several Asian chip stocks rose after US President Trump said that his administration plans to impose tariffs on semiconductor imports from firms that do not move production to the US. Advantest, Lasertec, SK Hynix, and TSMC rose 1-3%.

Japan's Nikkei 225 and Topix were up 0.8% and 0.4%, respectively. Data showed the country's household spending rose 1.4% on year in July, falling short of a forecast of a 2.3% rise by Reuters. Japanese stocks are likely to remain supported by export-oriented value stocks despite heightened political uncertainty in the country, Reuters reported Morgan Stanley MUFG Securities as saying.

Following were the levels of key Asian indices at 0743 IST:

(Akash Mandal)

Equity Alert: US indices gain Thu as economic data cements rate cut hopes

MUMBAI--0722 IST--US stock indices ended higher Thursday as economic data boosted hope of a rate cut by the Federal Reserve in September. The data showed initial claims for state unemployment benefits i the US rose by 8,000 to a seasonally adjusted 237,000 for the week ended Aug. 30, higher than a forecast of 230,000.

Investors now await the US August employment report later in the day, which is another crucial parameter in determining the Fed's rate cut trajectory. Currently, there is a 96% probability of a 25-basis-point cut at the Fed's September meeting, according to the CME Fedwatch tool. "The labour market data we're going to get--payrolls--tomorrow I don't see really changing anything significantly because (Fed Chair Jerome) Powell has effectively already told us we're getting a cut unless it's really, really out of bounds," Reuters quoted Mike Dickson, head of research and quantitative strategies at Horizon Investments, as saying.

Gains in technology majors such as Broadcom, Amazon, and Meta Platforms also drove the market. Broadcom gained 1% ahead of its quarterly results and Amazon surged over 4%. JetBlue Airways said it would partner with Amazon subsidiary Project Kuiper, a low Earth orbit satellite broadband internet network, to improve its onboard Wi-Fi, Reuters reported. Meta ended 2% higher.

Apparel maker American Eagle Outfitters skyrocketed 38?ter the company forecast third-quarter comparable sales above estimates. Salesforce fell 5% after the company forecast third-quarter revenue below estimates.

Following are the closing levels of US indices Thursday:

(Akash Mandal)

End

US$1 = INR 88.32

Edited by Tanima Banerjee

All prices from National Stock Exchange, unless otherwise specified.

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