India’s biggest software firm, Tata Consultancy Services posted its quarterly results today. While smaller rivals like Infosys posted disappointing earnings earlier in the week, TCS did better than expected. The company reported a 28% increase in Q1 profit to Rs2,380 crores. This is the first time TCS has posted earnings under IFRS standards instead of the US GAAP standards it previously used. The company said that while its results came on the back of robust demand, macroeconomic conditions were still uncertain. TCS reported its earnings after markets had closed. Shares of the firm had dipped 2.23% to 1125.25 on the BSE on a day wider markets made gains.
New figures show inflation is also a cause of concern. General inflation accelerated in June, though not as much as some economists had feared. The Wholesale Price Index for the month increased 9.44%. In May the index stood at 9.06%. Thursday’s numbers are the last major macroeconomic data to come out before the Reserve Bank meets to review policy rates on 26 July.
Staying with inflation, food prices have also picked up speed. India’s food price index rose 8.31% in the period to 2 July. The previous week it had gone up just 7.61%. Food inflation appears to be on the rise again after easing briefly. The met department said monsoon rains in the two weeks to 13 July were 19% below normal.
Indian markets rose modestly on Thursday after it turned out inflation wasn’t as bad as some had expected. The Sensex gained 22.18 points to 18618.20. And the Nifty rose 14.35 to 5599.80.