Indian equity markets were largely range-bound on Thursday, reflecting a cautious mood among investors. The muted performance comes amid growing global uncertainty, triggered by a sharp sell-off in US equities overnight. Weakness on Wall Street has dampened risk appetite across Asian markets, prompting investors to stay on the sidelines.
Adding to the pressure are concerns around a potential unwinding of the yen carry trade. For years, investors have borrowed cheaply in Japanese yen to invest in higher-yielding assets globally, including equities. Any strengthening of the yen or a shift in Japan’s monetary stance could force investors to unwind these positions, leading to capital outflows from riskier markets such as equities. Together, these global headwinds are weighing on sentiment and may keep Indian markets under pressure in the near term.
Prabhudas Lilladher report on TCS states, We attended TCS analyst day, the company demonstrated progress in AI-led services, its approach to make the talent AI-ready, and redefining partner ecosystem to provide measured value to enterprise clients. The company generates ~0.5% (annualized USD 1.5b) of its revenues through AI services, which is growing at a faster pace (around mid-teens QoQ) than the traditional IT Services. Currently, BPM as a function and BFS as a vertical are undergoing major chunks of pilots and experimentations, while other verticals have also joined the bandwagon of late. The AI maturity into business processes and functions would be slower starting with AI assisting humans (L2) to limited human intervention (L4), before it reaches the full autonomy (L5) with selflearning AI agents. TCS is also redefining partnerships beyond Hyperscalers & Enterprise solution providers to engaging proactively with deep-tech and AI native players ecosystem.
Also read: https://marksmendaily.com/business/indian-equities-remain-subdued-as-sectoral-pressure-weighs-investors-turn-cautious/
Company’s outlook says, We believe the strategic move to fill the white gaps through partnerships and acquisitions is much needed to stay competitive. With this service-led investment roadmap it is stitching end-to-end offerings with infraled investments (USD 6-7b) put out earlier. We retain BUY with TP of Rs. 3,800
