BSE IT index gains 1.21% - GEPL Capital

Markets opened in the negative today due to weakness in Asian markets arising from US shutdown. IT once again proved to be the best performing sector with the BSE IT Index gaining 1.21% led by TCS (+2.52%), HCL Tech (+1.94%) and Tech Mahindra (+3.21%). All three stocks touched life-time highs due to optimistic Q2FY14 expectations.

BSE BANKEX (-1.16%) was the worst performing index as investors preferred to switch from banks to other sectors due to concerns surrounding economic growth and deteriorating asset quality. The quarterly results season kicks off from Friday with Infosys' Q2FY14 numbers and would be keenly watched. Indian markets recovered till the end of the trading session but could not close in the green.

NIFTY and SENSEX closed the day with losses of 0.02% and 0.10% respectively. Among the Asian markets, SHANGHAI COMPOSITE was closed today, HANG SENG lost 0.71% while NIKKEI closed 1.22% lower.

The World Bank lowered its GDP growth forecast for developing East Asia. It expects developing East Asia to grow at 7.1% in CY2013 (versus 7.8% estimated earlier) and at 7.2% in CY2014 (versus 7.6% estimated earlier). This weighed on Asian stocks and they closed with losses. The nervousness was shared by European stocks as they were trading with losses today. FTSE, CAC and DAX were trading 0.78%, 0.94% and 1.08% lower respectively at 5.20PM Indian time.

Source : Equity Bulls

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