Sensex slightly lower amid auto stock sell-off; Maruti and Eicher Motors down 3%

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Although traders remained nervous at the prospect of the end of broad monetary support from central banks.

The Nikkei gained 0.5% while the Shanghai Composite rose 0.9%. The Hang Seng, on the other hand, fell 0.2%.

U.S. stock markets were closed Monday as the nation observed Martin Luther King Day, which is a federal holiday.

At home, Indian equity markets opened on a flat note following the trend on SGX Nifty. Benchmarks started on a positive note after being constrained over the past two sessions.

However, markets erased the gains as the session progressed and are currently trading slightly lower.

The RBI said on Monday that the omicron-led third wave of Covid-19 could turn out to be “more of a flash flood than a wave”, and India’s economy could rebound to pre-pandemic levels.

Market participants are watching shares of Bajaj Finance, ICICI Prudential Life Insurance, L&T Technology, Tata Elxsi and Trident as these companies will report their December quarter results today.

The BSE Sensex is down 230 points. Meanwhile, the NSE Nifty is trading down 65 points.

Axis Bank and HDFC Bank are among the top gainers today. Maruti Suzuki, on the other hand, is among the big losers today.

The BSE Mid Cap index is down 0.4%. The BSE Small Cap Index is trading down 0.3%.

Sector indices are trading mixed with stocks in the real estate and banking sectors showing buying interest.

Auto stocks and telecommunications stocks, on the other hand, are trading in the red.

Shares of Lakshmi Machine and Adani Green Energy hit their highest level in 52 weeks today.

The rupee is trading at 74.37 against the US dollar.

The price of gold fell 0.1% to 47,893 for 10 grams.

Meanwhile, silver prices are trading down 0.3% to 61,716 per kg.

Brent crude prices hit their highest level in more than seven years on growing demand optimism, easing concerns over the Omicron Covid variant and geopolitical tensions. The contract reached $86.84, a level not seen since late October 2014.

In IT industry news, HCL Technologies is among the hottest stocks today.

IT major HCL Technologies is revamping its internal technology interface to better gauge employee sentiment and provide an advanced onboarding or training tool, to stem skyrocketing attrition rate.

India’s third-largest IT company by revenue uses techniques such as gamification along with AI/ML tools to track and address levels of job-related dissatisfaction. It also aims to improve the overall employee training and onboarding experience.

The new interface will be implemented by the consulting firm EY. Last year, the company spent $20 million on social services for employees, such as vaccinations and hospital closures.

HCL Technologies’ churn rate reached 20% in the October-December 2021 quarter, compared to 15.7% in the previous three-month period, due to massive demand for technology resources.

The “Hire to Retire” platform aims to improve the entire employee lifecycle, from recruitment, onboarding and training to retirement.

To further contain attrition, HCL also plans to double its entry-level hires for the next fiscal year. It will hire about 20,000 freshmen by the end of the current fiscal year. As of the second fiscal quarter, the company had onboarded 15,787 freshmen of the planned number.

Note that Indian IT companies have reported their highest attrition rates in three years as they see employees being recruited by rivals as well as global companies and startups that are benefiting from increased technology spending in the world.

While Infosys saw its churn rate climb to 25.5% in the December quarter, Wipro reported churn spiked to 22.7%. As usual, the number was relatively lower for the TCS at 15.3%.

It remains to be seen whether HCL is able to sustain attrition rates with this new initiative. We will keep you informed of the latest developments in this space. Stay tuned.

Let’s move on to the news of the electricity sector, Tata Power Renewable Energy (TPREL), a wholly owned subsidiary of Tata Power, has announced the commissioning of two solar power projects of 50 MW each at Prayagraj and Banda in Uttar Pradesh.

The flagship projects were completed by TPREL within the agreed time frame despite Covid challenges.

With the addition of this 100MW capacity, Tata Power’s operating renewable capacity has increased to 3,055MW, of which 2,123MW is solar and 932MW is wind.

The company still has 1,854 MW of renewable projects in various stages of implementation.

It should be noted that the company aims to increase the share of green energy in its power generation portfolio to 80% by FY2030, up from the current level of 31%.

In August, the company offered the lowest price of 2.14/unit during the auction conducted by the public company Rewa Ultra Mega Solar for the construction of a solar capacity of 330 MW in Madhya Pradesh. It has also received a letter of intent to build 250 MW of solar capacity at Dondaicha Solar Park in Dhule district of Maharashtra.

Tata Power’s share price is currently down 0.3%.

Speaking of Tata Power, take a look at the chart below which shows the stellar run it has had on the stock exchanges.

This article is syndicated from equitymaster.com

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