Home / Markets / Stock Markets /  Sensex Marginally Down Amid Selling in Auto Stocks; Maruti, Eicher Motors Dip 3%

Asian stock markets are higher today, following the holiday in US markets, as economic recovery optimism returned to the fore.

Although traders remained on the edge over the prospect of the end to central banks' vast monetary support.

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

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

Back home, Indian share markets opened on a flat note following the trend on SGX Nifty. Benchmark indices started on a positive note after being rangebound in the last two sessions.

However, markets erased gains as the session progressed and are presently trading marginally lower.

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

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

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

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

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

Sectoral indices are trading mixed with stocks in the realty sector and banking sector witnessing buying interest.

Automobile stocks and telecom stocks, on the other hand, are trading in red.

Shares of Lakshmi Machine and Adani Green Energy hit their 52-week highs today.

The rupee is trading at 74.37 against the US$.

Gold prices are trading down by 0.1% at 47,893 per 10 grams.

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

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

In news from the IT sector, HCL Technologies is among the top buzzing stocks today.

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

India’s third largest IT firm in terms of revenues is using techniques such as gamification as well as AI/ML tools to track and address dissatisfaction levels related to work. It is also set to enhance the overall employee experience with respect to training and onboarding.

The new interface will be implemented by consulting firm EY. Last year, the company spent US$20 m on employee welfare services like vaccinations and hospital tie-ups.

HCL Technologies’ attrition rate touched 20% in the October-December 2021 quarter, up from 15.7% in the previous three-month period, due to the massive demand for tech resources.

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

To further contain attrition, HCL is also planning to double its hiring of freshers for the next fiscal. It will be hiring around 20,000 freshers by the end of the ongoing financial year. As of the fiscal second quarter, the company had onboarded 15,787 freshers out of the planned number.

Note that Indian IT firms have been reporting their highest attrition rates in three years as they see employees being snapped up by rivals as well as global companies and startups that are benefitting from a rise in technology spending worldwide.

While Infosys saw its attrition rate shoot up to 25.5% in the December quarter, Wipro reported a spike in attrition to 22.7%. As usual, the number was relatively lower for TCS at 15.3%.

It remains to be seen whether HCL is able to maintain attrition rates by this new initiative. We will keep you updated on the latest developments from this space. Stay tuned.

Moving on to news from the power sector, Tata Power Renewable Energy (TPREL), a 100% subsidiary of Tata Power announced commissioning of two Solar Power projects of 50 MW each at Prayagraj, and Banda in Uttar Pradesh. 

The landmark projects have been completed by TPREL within the agreed timelines in spite of Covid challenges.

With the addition of this 100 MW capacity, the renewable capacity in operation for Tata Power has increased to 3,055 MW, with 2,123 MW of solar and 932 MW of wind. 

The company has another 1,854 MW of renewable projects under various stages of implementation.

Note that the company aims to increase the share of green energy in its power generation portfolio to 80% by fiscal 2030, up from the current level of 31%. 

In August, the company quoted the lowest tariff of 2.14/unit in the auction conducted by state-run Rewa Ultra Mega Solar for building 330 MW solar capacity in Madhya Pradesh. It has also received a letter of intent to build 250 MW of solar capacities at the Dondaicha solar park in Maharashtra’s Dhule district.

Tata Power share price is currently trading down by 0.3%.

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


This article is syndicated from Equitymaster.com


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