Accenture shares tank 11% despite beating Q3 revenue estimates. Infosys ADRs fall 3%
It reported revenue of $17.7 billion for the quarter ended May 31, compared with analysts' average estimate of $17.30 billion, Reuters reported, citing data compiled by LSEG.
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The company is grappling with a weak U.S. federal contracting environment as the Trump administration has slowed new contracts and cut existing agreements in a bid to reduce federal spending, the report said, adding that the company said these changes have not had a material impact on its operations or financial condition.
Major indices on Wall Street were trading mixed, with the Dow 30 at 42,225.90, up 54.23 points or 0.13%. The S&P 500 was down 9.35 points or 0.16%, while the Nasdaq Composite traded at 19,464.10, down 82.13 points or 0.42%, around 12:23 PM GMT-4 (9:54 PM IST).
Taking cues, the American Depository Receipts (ADRs) of India's frontline IT companies,
Infosys
and Wipro, were also down. While Infosys ADRs were down 3% to hit the day's lows of $17.89,
Wipro
ADRs were marginally down at 0.33%.
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Indian headline indices ended their three-session losing streak on Friday, led by bank, energy and IT stocks. Individually,
HDFC Bank
and
Reliance Industries
(RIL) contributed the most. While Nifty gained 319.15 points or 1.29% to close at 25,112.40, the 30-stock S&P BSE Sensex finished at 82,408.17, rising by 1,046.30 points or 1.29%.
Indian IT stocks today ended with strong gains, with tier-2 stocks taking the lead. Persistent Systems jumped 3.5% and was followed by
Coforge
, which rallied 2%.
Mphasis
was also up by over 1% at the closing time.
Among largecap stocks, HCL Technologies was the top gainer, rising by 1.3%.
Others, including Oracle Financial Services Software (OFSS),
Tech Mahindra
,
Tata Consultancy Services
(TCS) and Wipro, settled with gains up to 0.8%.
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TPG offloads Rs 1,505 cr stake in Sai Life via block deals; Norges Bank, MFs step in
Among laggards were Infosys and LTIMindtree, which closed in the red.
The 10-stock Nifty IT index ended with an uptick of 0.84%.
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Mint
17 minutes ago
- Mint
Jobs of 1.73 lakh workers in gems and jewellery trade hang in balance
Mumbai: The cancellation of trade talks between India and the US could jeopardize the jobs of 1.73 lakh workers in India's gems and jewellery sector in the current festive season, as per industry estimates collated by a commerce ministry-backed trade council. The exports of natural cut and polished diamonds alone to the US could dip by as much as 80% or $1.2 billion (equal to 1.02 million carats) during August -November this year from $1.52 billion during the same time last year, shows a survey conducted by the Gem & Jewellery Export Promotion Council (GJEPC). Prior to 9 April, when reciprocal tariffs kicked in, the US imported cut and polished diamonds (CPD) from India at nil duty, while currently they attract 25% duty. Similarly, studded jewellery was at 5-7% duty, but now sees as high as 32% import duty into the US. US President Donald Trump's administration slapped a 25% tariff on Indian imports on 7 August and imposed a further punitive levy of 25% from 27 August for importing Russian oil. The total levy of 50% will exact a crushing blow on labour-intensive items exported to the US. The GJEPC survey has factored in a 25% tariff impact on the trade as the punitive tariff has not yet kicked in. India cuts and polishes nine out of 10 of the world's rough diamonds and employs 9.59 lakh workers in Gujarat factories owned by diamantaires whose chief export destinations are the US, UAE, Hong Kong, and Belgium. Last fiscal year, diamond exports alone stood at $13.26 billion, accounting for over two-fifths of total gems and jewellery exports of $29.9 billion. Gems and jewellery are among India's top export items, accounting for around 7% in the country's total exports of $437.51 billion in FY25, according to the commerce ministry data. Industry sources said that the US, on average, accounts for 40% of India's exports of CPD. Of the 1.73 lakh estimated job losses this season, 79,520 or 46% will be lost from the CPD trade alone—54,187 on natural diamonds and 25,333 on lab-growns. The rest will bekarigarsor artisans across Gujarat, Maharashtra and Rajasthan who manufacture studded jewellery, coloured gemstones, plain gold, silver and platinum jewellery, as per the survey. The assumption of job loss on natural diamonds for August-November this fiscal year is based on the premise that 300 carats of rough yield 75 carats (25%) of polished for every worker each year. This translates into 75 carats of rough being processed by each worker in four months. With an expected 1.02 million carats of decline in polished diamonds (from 4.06 million roughs) to the US from August to November this year, 54,187 workers could lose their livelihood in the short term. The same extrapolations have been made for lab-grown diamonds and other precious articles with different yields. "We are the world's largest makers of polished diamonds, so the jewellery manufacturers in the US might have to consider moving their production capacities elsewhere if a deal with the Trump administration gets inordinately delayed," said Anoop Mehta, president of Bharat Diamond Bourse, India's leading diamond trading hub, and a DTC sightholder. To be sure, small diamond manufacturing (0.5 carats and less), which is India's forte, cannot be replicated elsewhere easily, per GJEPC's ED Sabyasachi Ray. However, Ray added that the production capacity of diamonds exceeding 0.5 carats could shift to places like Israel if a trade deal with the US doesn't materialise soon. GJEPC has sought the intervention of the commerce ministry in facilitating a targeted cash incentive for the trade and a moratorium on interest payments from the finance ministry. Some of the measures include a targeted reimbursement mechanism for 25-50% of the additional US-imposed tariffs, applicable from August to December 2025, and a six-month deferment or moratorium from 1 August 2025 to 1 January 2026 on interest on working capital loans to ease the financial burden resulting from the abrupt imposition of the 50% tariff. Key Takeaways About 1.73 lakh jobs in India's jewellery sector are at risk due to US tariffs. Cut and polished diamond exports to the US could fall by 80%, or $1.2 billion, between August and November. Tariffs on cut and polished diamonds are up from zero to 25%, with a potential total impact of 50%. Industry leaders warn of production shifts to Israel and other countries. Trade body GJEPC is pitching for cash incentives and interest moratoriums.
Mint
17 minutes ago
- Mint
GST revamp aims to end bizarre tax disputes; automobiles to get tax relief
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The two-rate structure, one covering essential items and the other a standard rate on other items, will simplify the classification of goods. As per this proposal, all packaged and non-packaged food items will fall in the 5% category, said this official. The guiding principle for which product falls under which tax slab will be whether it is essential or non-essential, with the former being either exempt or placed in the 5% slab, a second official explained. Queries emailed to the finance ministry and to the GST Council seeking comments remained unanswered till press time. At present, packaged food items attract a 12% GST, while those not packed are taxed at 5%. This had been a source of confusion among consumers. Efforts to clarify under the existing framework had only led to more complication. A clarification issued by the GST Council last year that popcorn when sold loose will be taxed at 5%, at 12% if packaged and labelled, and at 18% if it is caramelised had drawn much public outrage. In 2020, the Karnataka Authority for Advance Ruling had said packaged paratha, which has to be heated before cooking, was not eligible for 5% GST applicable on rotis, placing it under the 18% slab applicable on food not classified anywhere else. The Karnataka Appellate Authority for Advance Ruling later annulled this order for procedural reasons, but did not rule on the tax rate applicable. Papad, a favourite Indian snack, too did not escape controversies. After some tweets claimed in 2021 that only round papad is exempt from tax and not square ones, the Central Board of Indirect Taxes and Customs (CBIC) stepped in and clarified that papad, by whatever name known or whatever the shape may be, is exempt from GST. 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As part of the restructure, high-end automobiles, which currently have a 28% GST and cess liability of 17-22% will be placed in the proposed 40% slab, without the cess, which will lead to reduction in the overall tax burden on them, confirmed the first two officials cited earlier, who are also privy to the discussions in the government. These are vehicles of 1200-1500 cubic capacity but not exceeding four metres in length (17% cess), vehicles of this capacity but exceeding four metres (20%) and sports utility vehicles which are more than 1500 cc and exceeding four metres in length (22%). Experts said volumes are not high in this segment. In this segment, the overall tax burden currently ranges from 45% to 50% including cess, which will now come down to 40%. On the other hand, some vehicles in the 28% slab currently attract only 1% cess. These are petrol, CNG and LPG-run vehicles with upto 1200 cc engine capacity and are less than four metres in length. 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Time of India
17 minutes ago
- Time of India
The tariff puzzle
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