We had mentioned in Friday’s closing report that Nifty, Sensex might retreat a bit. The major indices of the Indian stock markets were range-bound and closed with marginal gains. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
Global cues on Tuesday depressed the Indian equity markets to close on a flat-to-positive note. According to market observers, investors were cautious ahead of the two-day US Federal Open Market Committee (FOMC) meet which is scheduled to commence on late Tuesday evening. Besides, sentiments were subdued by heavy selling pressure witnessed in index heavyweights such as Reliance Industries and Bharti Airtel. The BSE market breadth was bearish -- with 1,520 declines and 1,350 advances. In terms of the broader markets, the S&P BSE mid-cap index closed up by 0.38%, while the small-cap index rose by 0.31%. Positive vibes from core sector and PMI (Purchasing Managers' Index) numbers should hold markets in good stead, and shall ensure that recent upside momentum is not lost amid consolidation. The Nikkei India Manufacturing Purchasing Managers' Index (PMI), which is a composite indicator of manufacturing performance during April 2017, matched the index reading of 52.5 reported in March. Power and telecom sector stocks traded down due to selling pressure. Along with IT, auto remained top performing sector on a positive side. Sector-wise, the S&P BSE consumer durables index surged by 187.28 points, the oil and gas index rose by 151.13 points and the automobile index gained 121.44 points. In contrast, the S&P BSE healthcare index fell by 116.76 points, the capital goods index was down by 99.47 points, and the metal index edged down by 64.52 points.
Global software major Infosys on Tuesday said it would hire 10,000 American workers in the next two years, a move seen as a fallout of US President Donald Trump's executive order on H1-B visas a fortnight ago. The city-based IT major also said it would set up four technology and innovation hubs across North America to focus on cutting-edge technology, including artificial intelligence (AI), machine learning, user experience, emerging digital technologies, cloud and big data. The first hub will open in the mid-western state of Indiana in August and is expected to create 2,000 jobs by 2021 for American workers. "The hubs will have technology and innovation focused areas and serve clients in key industries such as financial services, manufacturing, healthcare, retail and energy," said the firm in a statement here. Clients in the US contribute about 60 per cent of the company's software export revenue per year. "We are committed to hiring 10,000 American technology workers over the next two years to help invent and deliver the digital futures for our clients in the US," said Infosys Chief Executive Vishal Sikka in the statement. The $10.3-billion company will hire experienced professionals as well as recent graduates from major universities and local and community colleges to create talent pools for the future.
"Basically, Infosys is hiring American workers to please Trump, who passed an order recently (April 19) which will force Indian IT firms to pay more salary for high-skilled employees working in the US on H-1B visas," Head Hunters India Founder-Chairman and Managing Director K. Lakshmikanth told IANS here. Infosys Deputy Chief Operating Officer S. Ravi Kumar however said the company had been hiring in the US over the years for organic growth and create talent on campuses. "The right strategy for a company like ours is to build local talent pools and supplement them with global talent in times of shortage. The hubs will be located where we have client clusters and good local talent is available," he said. The decision to ramp up local hiring by Indian IT majors like Infosys, TCS and Wipro comes also in light of Trump's order to ensure that H-1B visas were awarded to the most skilled and highly-paid. "Infosys will take time to ramp up local hiring as it is very costly. It has to pay a minimum of $80,000 (Rs 52 lakh) per year to a skilled American techie. For the same amount, it can hire four software engineers in India for its offshore development work," said Lakshmikanth. Currently, an Indian IT firm pays $60,000-65,000 per year for techies working in the US on H-1B visas and they return after three years of onsite work. Infosys, which sends about 3,000-4,000 techies to the US every year, will get 50 per cent of the H1B visas under the new rules as part of the quota and the rest through the lottery system. "If Infosys hires about 500 Americans techies, it will result in loss of 2,000 jobs in India for offshore operations. Automation and AI (Artificial Intelligence) will reduce hiring by another 30-40 per cent," said Lakshmikanth. Indian IT industry representative body Nasscom, however, declined to react to Infosys' plans, saying it "doesn't comment on company specific matters". Infosys shares closed at Rs921.00, up 0.17% on the BSE.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: