Business News: IT Giants Face Market Downturn: TCS, HCL Tech, and M&M Shares Drop as Sensex Falls; Banks Prioritize Safety Amid RBI Warnings

Share prices of TCS and HCL Tech fell sharply before the Q1 results, an indication of weak performance. The TCS share price dropped 1.73 per cent and the counter of HCL Tech by 2.11 per cent on Wednesday. Analysts termed TCS's revenue growth at modest levels. Recent deal wins were offset by margin contraction due to wage hikes. HCL Tech is likely to report a decline in revenue by 2 percent with contraction in margins due to seasonal and other adjustments to IT services. On the whole, the IT sector has been expecting a tough Q1 with negligible growth in discretionary spends.

After touching all-time highs, the Indian equities market witnessed a decline, with the BSE Sensex shedding 676.67 points and the NSE Nifty shedding 188.25 points. Mahindra & Mahindra was the biggest loser, shedding 7.65 percent after its announcement of price cuts on SUVs. Not in keeping with global market trend, the good show of US market and strong inflows from retail investors give it strength. The word of caution, however, is speculative activity in small-caps. Also, U.S. inflation data next week could be influential in Federal Reserve decisions.

Shares of Mahindra & Mahindra were trading 6.62 percent lower at ₹2,732 on the BSE after the company decided to cut prices for its XUV700 by ₹2 lakh. This indicated excess inventory and loss of demand just three years in. Other auto shares like Maruti Suzuki and Tata Motors also traded in the negative. The BSE Sensex touched a high in the morning but then fell back to finally close with a loss of 426.87 points at 79924.77 in a highly volatile trading session.

In step with rising cyber frauds, Indian banks are strengthening internet banking security. Punjab National Bank introduced an optional feature called 'Safety Ring' under which customers can set a daily transaction limit on term deposits to minimize losses due to unauthorized access. ICICI Bank introduced 'SmartLock', by which a customer can lock or unlock multiple banking services with a single click, which includes Internet Banking, UPI, and Cards using its mobile banking app iMobile Pay. These measures arm the customer to be more in control while protecting their accounts from fraud.

Microsoft will be relinquishing its board observer seat at OpenAI, saying that the AI start-up has improved its governance. The observer seat, which granted Microsoft a presence at board meetings without voting rights, was in the hot seat for antitrust scrutiny in the United States, United Kingdom, and Europe. Having over $10 billion invested in OpenAI, such a seat no longer heldvalue for Microsoft with new partnerships, innovation, and a growing customer base for OpenAI. Apple, once initially touted to take a similar role, is not going to. The two companies are racing to sell AI technology while combating regulatory misgivings.

The Reserve Bank of India has pointed out misuses of internal accounts of many banks in raids, exposing fraud and evergreening of loans. RBI Deputy Governor Swaminathan J has said there were many such unwarranted internal accounts, some of which have been used to perpetrate fraud. The RBI has asked banks to close such accounts and get better management and control. In addition, the ministry has asked banks and NBFCs to conduct periodic internal audits of their accounts and report the same for prevention of digital frauds.