Reliance Industries’ stock tanks 23 pc from its July high
The stock of Reliance Industries Limited (RIL), India's largest company by market capitalisation, has slipped by 23 per cent from its highest level in July this year.
Tata Consultancy Services (TCS) gained nearly 1 per cent in early trade after it reported a 28.5 per cent jump in June quarter net profit.
The stock started the trade in the green and gained 0.73 per cent to Rs 3,281 on the BSE. As the trade progressed, it took a downward trend to hit a low of Rs 3,211 or (-46.10).
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At 2:48 pm, TCS NSE scrip gained was at 1.45 per cent to Rs 3,211.35.
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On Thursday, the country’s largest software firm TCS reported a 28.5 per cent jump in June quarter net profit at Rs 9,008 crore and called out the domestic business as a drag, which restricted its overall growth because of the second wave of COVID-19.
A cash cow for the over USD 100 billion Tata group said the June quarter results were a tale of two contrasting trends of healthy growth in core markets like the US and segments like banking and the domestic business being a drag.
It, however, added that even in India, which has traditionally been an insignificant market for the firm, activity is showing some signs of improvement and exuded confidence of meeting the overall double-digit revenue growth estimate for FY22 announced earlier.
The second wave dented revenues by as much as Rs 350 crore as businesses like passport issuances and tests-focused TCS iON remained impacted. Its chief executive and managing director Rajesh Gopinathan told reporters.
Reacting to the results, analysts at domestic brokerage Reliance Securities said the revenue underperformance was a one-off and welcomed the significant deal wins.
It added that TCS is set to be a key beneficiary of the uptick in technology spends over the medium term.
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