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Informist, Monday, Jul. 28, 2025                                      Tel +91 (22) 6985-4000

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Equity Alert: Analysts see TCS layoffs as a negative; Citi keeps 'sell' rating

 

MUMBAI--0825 IST--Global brokerages Citi and Jefferies have sounded caution on Tata Consultancy Services' recent decision to lay off 2% of its global workforce during 2025-26 (Apr-Mar). Citi has maintained a 'sell' rating on the stock with a target price of INR 3,135, which offers no upside from the stock's latest closing price of INR 3,135.80.

 

Citi said June quarter earnings indicate continued sluggishness in core markets and that the information technology major's margins and cash flow need to be monitored, CNBC-TV18 reported. Jefferies said the cut in workforce may lead to near-term execution slippages and higher attrition in the long-term, according to a report by CNBC-TV18. The brokerage noted that other IT majors who are unable to gain market share may also resort to layoffs.

 

"With most deal wins being led by cost-optimisation initiatives and involving AI-led productivity pass through, IT firms unable to gain market share may resort to lay-offs," Jefferies said. The brokerage remains selective in the Indian IT sectors, preferring Infosys, HCL Technologies, Mphasis, and Coforge.

 

TCS Sunday said it plans to lay off as many as 12,000 employees over the year, saying the company is "on a journey to become a future-ready organisation." The layoffs are likely to be from middle and senior grade employees. The company also said there was continued delay in clients' decision making in terms of discretionary spends due to persistent uncertainty about the impact of US tariffs. TCS' total employee count was 613,069 as on Jun. 30 and its IT services trailing 12-month attrition was 13.8%, one of the highest rate among domestic IT players.  (Akash Mandal)

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Equity Alert: Asian markets mixed; US-China trade negotiations eyed

 

MUMBAI--0815 IST--Asian indices were mixed on Monday, with those in Japan and Singapore extending losses from last week. However, Chinese indices were higher ahead of meeting between US officials and their Chinese counterparts later in the day. Investors in this region likely looked past the optimism in the US market and the trade deal between US and European Union.

 

At 0803 IST, Japan's Nikkei 225 was down 0.8% and the Topix fell 0.5%. The indices were lower for the second straight sessions as enthusiasm around the country's deal with the US weaned off. South Korea's Kospi was 0.4% lower.  

 

Meanwhile, China's CSI and Hong Kong's Hang Seng were 0.4% and 0.9% higher, respectively. The US and China are expected to extend their tariff truce by another 90 days at trade talks in Stockholm beginning Monday, South China Morning Post reported Sunday quoting sources privy to the matter on both sides. These countries had agreed in May to revoke most of the heavy tariffs levied on each other's goods for 90 days while continuing with trade negotiations, which is set to expire on Aug. 12, the report said. Among other indices, FTSE Singapore was 0.3% lower while Australia's S&P ASX 200 indx was 0.2% lower.

 

Following are the levels of key Asian indices at 0803 IST: 

 

INDEX	LEVEL	CHANGE IN %
CSI 300 Index	4143.4767	0.40
Hang Seng Index	25606.62	0.86
Nikkei 225 Day	41150.71	(-)0.74
TOPIX FIRST SECTION	2938.82	(-)0.44
KOSPI	3182.94	(-)0.41
FTSE Singapore Straits Times	4245.93	(-)0.36
S&P/ASX 200 Index	8685.8	0.22

 

(Gopika Balasubramanium)

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Equity Alert: Mkt likely to be in range; some gains seen before Thu expiry

 

MUMBAI--0806 IST--Benchmark indices are likely to stay in a range with a negative bias Monday as sentiment remains weak due to muted June quarter earnings so far and delay in a US-India trade deal as the Aug. 1 deadline fast approaches. With most major banks having declared their earnings, focus will now shift to results of some major automobile makers during the week. 

 

While sentiment remains weak, some analysts expect the market to pick up a bit before the weekly expiry of the Nifty 50's derivatives contracts on Thursday. "I see another 100 points downside but the market we should see short covering ahead of the weekly expiry," said Anshul Jain, head of research at Laxmishree Investment and Securities. He expects the 50-stock index to move in a range of 24800-25000 points.

 

The July contract of the GIFT Nifty also indicates a muted start to the week for the market. At 0802 IST, the contract was at 24840 points, up 25 points from its previous close. The August contract was 13 points lower at 24935.50 points. On Friday, the Nifty 50 had closed at 24837 points, down 225.10 points or 0.9%. The BSE Sensex had ended at 81463.09 points, down 721.08 points or 0.9%.

 

On Friday, indices in the US ended slightly higher ahead of a significant week which will see US Federal Reserve's policy meeting, major corporate earnings, and trump's Aug. 1 deadline for tariffs. Indices in Asia were mixed in early trade Monday. Over the weekend, the US agreed a trade deal with the EU in which it will levy a blanket tariff of 15% on goods from the European bloc. As part of the deal, the EU will give up the proposal of 30% tariffs on US goods. US President Donald Trump also said the EU had promised hundreds of billions of dollars worth of investment and energy purchases, BBC reported.  (Akash Mandal)

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Equity Alert: US mkt ends up Fri; US details 15% tariff deal on EU goods Sun

 

MUMBAI--0739 IST--US equity indices ended higher on Friday boosted by optimism that the US and the European Union would work out a trade deal soon. US President Donald Trump and European Union Commission President Ursula von der Leyen were scheduled meet on Sunday in Scotland to negotiate the terms. On Sunday, both the countries struck a deal where goods from the bloc will attract a 15% import duty. 

 

Indices had surged last week owing to upbeat quarterly earnings, trade deals with Japan and the Philippines, and on expectation that the White House will finalise more agreements with other countries to avoid higher tariffs. "The market has been anticipating that the deals are going to get done," Reuters quoted Thomas Martin, a senior portfolio manager at Atlanta-based GLOBALT, as saying. "Personally, I have a bit more scepticism. You've got to be careful, because if they don't get done, there is more room for disappointment than there is upside." 

 

The S&P 500 closed 0.4% higher at 6388.64 points and the Nasdaq gained 0.2% to end at 21108.32 points on Friday, after having touched their respective life time highs. The Dow Jones Industrial Average closed at 44901.92 points, up 0.5%. 

 

Among stocks, Charter Communications plunged 18?ter it reported a deeper-than-expected loss in broadband subscriber, hurt by competition from wireless carriers bundling high-speed internet services with fifth generation mobile plans. Centene rose 6.1?ter it said health insurer expects to deliver improved profitability in its three government-backed healthcare insurance businesses in 2026.

 

This week, investors will focus on the US Federal Reserve, with the officials on Thursday expected to keep interest rates unchanged as the central bank weighs the impact of tariffs on inflation. Now, market participants see about a probability of 60% of a rate cut in September, CME's FedWatch tool showed. Focus will be also on Microsoft, Apple, Amazon, and Meta Platforms as their earnings are due this week.

 

Following are the closing levels of US indices Wednesday:

 

INDEX	LAST LEVEL	CHANGE IN %
Dow Jones Industrial Average	44901.92	0.47
NASDAQ Composite	21108.32	0.24
S&P 500	6388.64	0.40

 

(Gopika Balasubramanium)

End

 

US$1 = INR 86.51

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

All prices from National Stock Exchange, unless otherwise specified.

All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.

All times are Indian Standard Time.

 

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