Major Events –

  • IT Big 3 declare their results. (Infosys had declared previous week).

  • TCS declared a better than expected profit growth of 64% for the quarter, whereas for Infosys, it was decent growth of 16%. Further, TCS and Infosys have projected strong outlook for FY17. However, Wipro recorded a modest growth of 2% (Operating profit). Also, while it has sounded out muted outlook, the company is embarking on share buyback. This essentially is a sign of management’s confidence on company’s strong fundamentals in the longer run.
  • In another development, TCS, with close to 335,000 employee base, moves away from ‘bell curve’ appraisal system, like Infosys. This may sound like a good move, but implementing it for such a mammoth organization may be a challenge and poses risk of creating further employee dissatisfaction.
  • TCS fined $ 940 mn in a trade secret related case in US, even though the Court has given indication that the fine amount may be reduced. The decision puts back the spotlight on the IT and Pharma companies which have significant operations in US. The companies need to do rigorous review of legal requirements and put in place stronger risk management system in place, which addresses risks arising out of every single individual employee in that country.
  • Exports continue its declining trend for 16th month in March’16. However, decline in non-oil exports is lower meaning that exports performance is not all that bad. Imports also falls in tandem bringing down the trade deficit to five year low.
  • It’s crisis time for Automotive industry with Mitsubishi Motors admitting to improper fuel consumption testing to present better fuel consumption rates. This is second big admission after Volkswagen admitted to manipulation in emission tests last year. It may not be a surprise if more skeleton falls from closet. The industry seems to be buckling under increasing pressure from the governments and environmental activists to reduce its carbon footprint.
  • Reliance Industries posts impressive results. (Separate story coming)

Events covered during the week –

  • Meeting of major oil producers fail to reach decision on production cut.
  • WPI based Inflation continues to remain in negative terrain even though CPI recorded nearly 5% increase.
  • Honourable Supreme Court imposes fine all the three parties in a corporate case for waste of Court’s time.
  • Tirupati Temple deposits 1,311 kg of gold with PNB, a big boost to Govt’s Gold Monetisation Scheme.
  • In defense of Dr Rajan…

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