SGX Nifty hints at a positive start for benchmark indices BSE Sensex and NSE Nifty 50 on Friday. Infosys, Wipro, HCL Technologies among stocks to watch.
Indian benchmark indices are likely to open in green, hinted SGX Nifty. Ahead of the week’s last trading session, Nifty futures were trading higher 17974 level on the Singapore Exchange. In the previous session, BSE Sensex declined 147 pts to 59,958, while NSE Nifty 50 fell 38 pts to 17,858. “In the near term, investors will take cues from inflation data as this will provide direction to central banks for rate hike. IT sector too would remain in focus after Cyient reported better than expected results, while Infosys reported decent numbers. Momentum likely to continue in metals with surge in copper prices to 6 months high fueled by china reopening and weakening dollar,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.
Stocks in focus on 13 January, Friday
Infosys: The IT services company clocked a 13% on-year growth in profit at Rs 6,586 crore and revenue grew by 20% to Rs 38,318 crore, beating analysts’ expectations. Revenue in dollar terms increased to $4,659 million and constant currency revenue growth was 13.7% on-year. Infosys raised its FY23 revenue growth guidance, in constant currency terms, to 16-16.5%, from 15-16% earlier, and EBIT margin guidance remained unchanged at 21-22%. Large deal total contract value for the quarter was the strongest in the last eight quarters at $3.3 billion.
HCL Technologies: The company reported a 20% rise in its consolidated net profit for the quarter ended December 2022 (Q3FY23) at Rs 4,096 crore as against Rs 3,442 crore a year back. Its consolidated revenue from operations increased 19.61% to Rs 26,700 crore against Rs 22,321 crore in the corresponding quarter last year. Revenue in terms of constant currency was up 13.1% on-year. The company said it won 17 large deals during the quarter – seven in the services segment and 10 in software. The total contract value (TCV) of new deal wins was at $2.35 billion, up 10% on-year.
Wipro: The IT company will report its Q3 earnings on Friday. According to analysts, Wipro’s consolidated revenue might come in at Rs 23,436 crore, registering 14.7% on-year (YoY) growth, while consolidated profit after tax is expected to be flat at Rs 2,952 crore. Q4 FY23 guidance and FY23 outlook; Attrition and hiring trend; Updates on core geographies; Performance of acquired companies like CAPCO; and impact of macro headwinds among key things to watch in Wipro Q3 results.
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L&T Technology Services (LTTS): A subsidiary of construction major Larsen & Toubro, LTTS has entered into an agreement to acquire the Smart World & Communication (SWC) business from the parent, in an Rs 800-crore deal. SWC is a connected intelligence solution provider with presence in communications, safe and smart solutions and cybersecurity. The company will fund the transaction, which is expected to close within three months, using its cash reserves, LTTS said in a regulatory update.
Cyient: December quarter revenue grew 12.7% compared to the September period. EBIT margin expanded to 13.2% from 10.1%. Order intake in the services business grew 83% on-quarter to $237.1 million. The company won five large deals in services with a total contract potential of $59.2 million. Overall pipeline for the year is 1.5 times higher from last year with large deals accounting for 70% of the pipeline.
Paytm: Alibaba.com Singapore E-Commerce Pvt. Ltd. sold 1.92 crore shares of the company on Thursday. 3.1% of Paytm‘s equity exchanged hands on, triggering a sharp fall in the stock in the previous session. Buyers in the trade include Ghisallo Master Fund LP, which purchased close to 50 lakh shares and Morgan Stanley Asia (Singapore) Pte. – ODI, which purchased close to 55 lakh shares. Both the buying transactions took place at a price of Rs 534.8 apiece.
Anand Rathi: Anand Rathi Wealth Ltd reported a consolidated net profit of Rs 43 crore for Oct – Dec 2022 (Q3FY23), an increase of 35% compared to Oct – Dec 2021 and total revenue of Rs 140 crores representing an increase of 29%. It revised full-year AUM guidance higher to Rs 40,000 crore from Rs 39,000 crore previously. Revenue guidance has been raised to Rs 525 crore from Rs 495 crore while net profit guidance raised to Rs 165 crore from Rs 155 crore earlier.
Shriram Finance: Private equity player Apax Partners’ arm Dynasty Acquisition is likely to sell its entire stake – (up to 1.73 crore shares or a 4.63 percent stake) in Shriram Finance via a block deal on January 13, reports CNBC Awaaz quoting sources. As per the report, Apax will offer up to a 6 percent discount on deal. The deal size is Rs 2,250 crore including the green shoe option.
