IT stocks were in focus, with TCS and Infosys finishing the day in the green, but Wipro deep in the red, a day after the three reported their Q3 numbers.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst at Deen Dayal Investments, believes the next target for the Nifty is 18,500 with strong support at 17,800.
“I don’t know whether it is real rerating or whether people are just picking it up because it has been one of those slightly slower moves.
The Nifty has formed a doji candlestick pattern that indicates indecisiveness between the bulls and the bears, according to Shrikant Chouhan, Head of Equity Research at Kotak Securities.
“Direction-wise, below 18,200, we can expect profit booking and after a breakdown, the chances of the index hitting 18,140-18,100 levels are bright.
However, if you just look at the numbers, we don’t see potentially margin upside in some of these plays; it could be more in line with the topline growth,” he said.
If we are going to value these companies at 30 times-plus, we may have maybe about 10-15 percent upside in some of these stocks.
Only if there are surprises from here, will we see further gains in the market in the near term but as we roll over from FY23 to FY24, that is when the upside starts to reflect on the market,” he said.
After the market hours, Mindtree reported a net profit of Rs 437.5 crore for the December quarter, up 9.7 percent on a quarter-on-quarter basis.
Divi’s Labs, Cipla, UPL, Indian Oil and Hindalco were also among the gainers.
On the Multi Commodity Exchange, crude oil for the January delivery dropped by Rs 6, or 0.1 per cent, to Rs 6107 per barrel with a business volume of 9,625 lots.
Results have come more or less on the expected line of all the companies and as we have been expecting around 20 percent kind of growth possibility for Infosys it is getting now validated with the management revising the guidance upwards to 20 percent.
We think 4 percent kind of depreciation over the next decade is something that we should get prepared for and IT will be a beneficiary,” said Sunil Subramaniam, MD & CEO, Sundaram Mutual Fund.
Users will now have the option to select a charting platform at their convenience,” said Nandkishore Purohit, Chief Digital Officer at IIFL Securities.
The Nifty IT index rose as much as 0.7 percent before giving up most of those gains, as TCS and Infosys investors cheered the latest earnings reports, but Wipro tumbled after the company missed forecasts on most grounds.
Indian startups have raised USD 42 billion in 2021, up from USD 11.5 billion in the previous year, a report by Orios Venture Partners said.
These include ShareChat, Cred, Meesho, Nazara, Moglix, MPL, Grofers .
Vedanta on Thursday said it has procured about 2 billion units of renewable energy through power exchanges for its aluminium smelter located in Jharsuguda, Odisha.
Tata Elxsi’s share price climbed more than 5 percent intraday on Thursday when information technology stocks, including Infosys, Wipro, and Tata Consultancy Services , remained in focus following the announcement of their earnings for the third quarter ended December 31, 2021.
Minister of Commerce and Industry Piyush Goyal met with Anne-Marie Trevelyan, the UK Secretary of State for International Trade, on Thursday to officially begin discussions for a free trade agreement.
Chetan Ahya, Chief Asia Economist, Morgan Stanley, remains constructive on India’s growth numbers.
Shedding light on the company’s Q3 performance and the ongoing attrition issue faced by the IT industry, Samir Seksaria, CFO and Milind Lakkad, Chief Human Resource Officer, spoke to CNBC-TV18.