Fri. Aug 19th, 2022
Share Market Live: Sensex, Nifty At Record; Adani Ports; L&T Shares Rise

Wipro Hits Record As Brokerages Raise Target Prices After Q2 Beat

Wipro Ltd. shares rose as much as 7.6% to Rs 723.9 in early trade, before paring gains, as brokerages raised their target prices after the company’s September quarter earnings beat estimates.

Analysts cited broad-based revenue growth, healthy large-deal intake, unprecedented demand environment, especially for new-age services like cloud, as the key reasons for raising the target prices.

Of the 50 analysts tracking the stock, 20 have a ‘buy’ rating, according to Bloomberg data. 17 recommend ‘hold’, while the remaining 13 recommend hold. The 12-month Bloomberg consensus target price indicates a downside of around 7% from current levels.

Also Read: Wipro Q2 Results: Shares Hit A Record As Brokerages Raise Price Targets

Mindtree Jumps As Brokerages Raise Target Price On Q2 Beat

Shares of Mindtree Ltd. rose 10% in intraday trade to a record Rs 4,800.2 apiece after the company reported net income above estimates in the september quarter.

Second Quarter Results (Consolidated, QoQ)

  • Net income at Rs 398.9 crore vs estimate of Rs 339 crore (Bloomberg consensus)

  • Revenue at Rs 2,586.2 crore vs estimate of Rs 2,474 crore

  • Total costs at R 2,190 crore vs Rs 1,898.3 crore QoQ

  • EBITDA at Rs 531 crore vs estiate of Rs 484 crore

  • Dividend per share at Rs 10

Brokerages on Mindtree

Prabhudas Lilladher

  • Maintains ‘buy’ rating with the target price raised to Rs 4,804 from Rs 4,593 earlier, an implied upside of 10%

  • September quarter performance was exceptional, both on revenue growth as well as margin front.

  • EPS estimates has increased by 5% in FY22 led by strong beat in revenue and margins in the september quarter.

  • Already ahead by 12% compared to FY23/24 consensus EPS estimates

  • Expect massive upgrades in consensus EPS estimates.

  • September quarter growth led by strong growth in RCM party aided by project backlogs as countries reopened after extended lockdown.

  • Bulk of growth driven by customer success service line, which indicates strong demand for adoption of technology for revenue maximisation.

  • Headwinds from wage hike and supply side pressures were offset by operational efficiencies and increase in scale

Also Read: Mindtree Q2 Review – Robust Beat On All Counts; Momentum May Tone Down Hereon: Dolat Capital

Wipro, Infosys Surge Post Q2 Beat

Opening Bell: Sensex, Nifty Open At Record; Wipro, Infosys Lead Advance

India’s stock benchmarks opened higher and hit record highs, aided by gains in information technology stocks, after strong earnings from Wipro Ltd., Infosys Ltd. and Mindtree Ltd. dispelled concerns over the outlook in the sector after lackluster earnings by sectoral heavyweight Tata Consultancy Services Ltd. earlier in the week.

The S&P BSE Sensex rose 0.62% to 61,114.39. The NSE Nifty 50 advanced by a similar magnitude to 18,285.50. Both the indices hit record highs in morning trade.

The broader indices almost mirrored their larger peers with the S&P BSE MidCap and S&P BSE SmallCap indexes gaining over 0.8%. All the 19 sectoral indices compiled by the BSE Ltd. advanced, with S&P BSE Information Technology index gaining over 2.5%.

The market breadth was skewed in favour of bulls. About 1,656 stocks advanced, 587 declined and 109 remained unchanged

Rupee Bond Traders Await Weekly Auction, WPI Data

Indian bond traders will look forward to a Rs 24,000 crore ($3.2b) weekly bond auction. They will also monitor a report that’s expected to show that wholesale inflation eased in September.

  • USD/INR fell 0.2% to 75.3737 on Wednesday

  • Wholesale prices probably rose 11.15% in September YoY, compared with 11.39% in August

  • 10-year yields fell 1bps to 6.32%; Indian bonds and FX markets are shut Friday for a holiday

  • Global funds buy net Rs 937 crore of India stocks Wednesday: NSE

  • They sold Rs 152 crore of sovereign bonds under limits available to foreign investors, and added Rs 784 crore of corporate debt

  • State-run banks sold Rs 987 crore of sovereign bonds on Oct. 13: CCIL data. Foreign banks bought Rs 734 crore of bonds

Source: Bloomberg

Information Technology Stocks In Focus

India’s software services shares are in focus as better-than-expected earnings by Infosys, Wipro Ltd. and Mindtree Ltd. may cast aside the concerns due to disappointing numbers from Tata Consultancy Services Ltd.

Stocks To Watch: Tata Consultancy Services, Infosys, HCL Technologies, Wipro, Tech Mahindra, Mindtree, L&T Technology, Birlasoft, Coforge, L&T Infotech, Mphasis

SGX Nifty Hints At Gains; Wipro, Infosys In Focus

Global stocks rose Thursday as traders assessed the durability of the economic recovery to inflationary pressures and a looming reduction in the Federal Reserve’s pandemic-era stimulus.

Equities climbed in Japan, South Korea and Australia. U.S. futures pushed higher after Wall Street snapped a three-day losing streak, with the tech-heavy Nasdaq 100 outperforming the S&P 500.

India’s SGX Nifty 50 Index futures for October delivery rose 0.5% to 18,262.00, while MSCI Asia Pacific Index rose 0.4%. The NSE Nifty 50 Index added 0.9% Wednesday to close at 18,161. Foreign investors bought net Rs 255 crore of stocks on Tuesday, according to NSDL website.

Longer term Treasuries pared a rally, while a key part of the Treasury yield curve has flattened to around a one-year low. U.S. inflation held above 5% and Fed minutes signaled a tapering of bond purchases from mid-November or mid-December. Meanwhile, a 30-year Treasury auction drew strong demand.

Crude oil stabilized above $80 a barrel and gold was near the highest in nearly a month. In cryptocurrencies, Bitcoin has resumed its rally, taking the largest token above $57,000.

Back home, Infosys, Wipro, MindTree may react as the companies reported quarterly results after the market closed Wednesday. HCL Tech, Cyient, Indiabulls Real are among the companies scheduled to report earnings Thursday.

Government will release wholesale-price inflation for September, while industry group Siam is scheduled to release September auto sales data.

Also Read: All You Need To Know Going Into Trade On October 14

. Read more on Markets by BloombergQuint.

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