Shares of Indian information technology (IT) software services companies were trading in a narrow range at the Bombay Stock Exchange (BSE) on Thursday ahead of June quarter results to be declared by Tata Consultancy Services (TCS) after market hours.
The TCS stock had gained 0.31 percent to trade at Rs. 2,499 at around 11.52 a.m., while Infosys was down 0.81 percent at Rs. 1,183.50. Wipro shares were down 0.55 percent at Rs. 570.75 apiece and Tech Mahindra was trading with gains of 1.47 percent at Rs. 514.50 apiece on the BSE.
The BSE IT index was up 0.01 percent while the NSE Nifty IT index was higher at 0.15 percent.
Mumbai-based TCS is expected to set the market trend for Infosys, Wipro and other IT services companies. "A big miss on the analysts' expectation would be a drag on the sector," IDFC Securities said in a note.
The broad consensus is that the company's revenues would grow in the range of 3.1 to 3.9 percent on a sequential basis. It is also expected to be impacted by Brexit as Britain accounts for about 14 percent of its revenues in British pounds.
"We expect the company to post 3.2 percent sequential growth in revenues to $4,375 million. In rupee terms, revenues are expected to come in at Rs. 29,362 crore, up 3.2 percent qoq," brokerage Angel Broking said in its note.
"Changed economic conditions due to Brexit could impact TCS the most on account of 14% GBP exposureâ€”major concern," Edelweiss Securities Ltd. had said in its note a few days ago.
A few days ago, Phiroz Vandrevala, non-executive director of TCS, had quit for "personal reasons", according to a regulatory filing by the company to the BSE.
The BSE Sensex was trading at up 48 points at 27,863 while the NSE Nifty 50 was trading with gains of 14 points at 8,534.
The Indian rupee opened at 67 to the US dollar on Thursday after closing Wednesday session at 67.05. "The intra-day range is seen between 66.90-67.20 levels," IFA Global said in its note on Thursday.
Indian stock markets were expected to open flat, tracking Asian equities.