Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd on Infosys Q1 earnings
“Infosys reported numbers which were way ahead of street estimates. The company reported a 2.4% QoQ degrowth in revenues to USD 3,121mn as compared to expectations of 4-5% degrowth. In rupee terms revenue grew by 1.7% qoq to Rs.23,665 crore while gross profits grew by 2.5% QoQ to Rs.7,962 crore. Gross margins expanded by 26bps QoQ to 33.6% while tight cost control in the form of reduced SG&A expenses led to a ~160bps QoQ expansion in operating margins to 22.7% while operating profits grew by 8.9% QoQ to Rs.5,365 crore. However net profit for the quarter degrew by 2.0% QoQ to Rs.4,233 crore due to lower other income and higher tax rates during the quarter.
While the Q1FY21 numbers were significantly above street expectations on all counts, new deal wins also remained strong at $1.74 billion for the quarter. The management has guided for 0-2% growth in constant currency terms for FY2021 which is a big positive and would go a long way in reaffirming the markets faith in the company. Post the Q1FY21 numbers we expect upgrades in FY2021 and FY2022 numbers.”
Rupee Update | The rupee extended early losses and traded at day’s low level at 75.27, amid buying in the domestic equity market. The rupee had opened lower at 75.23 per dollar against the previous close of 75.14.
Market Watch: Shrikant Chouhan, VP, Technical Research of Kotak Securities
“Muthoot Finance which is currently trading at Rs 1,100-1,110 levels, here we are expecting stock to move towards Rs 1,200 because the stock has completed its correction and now it is ready to bounce back from current levels. It is not parallel to the trend of Bank Nifty, so I am of the view that we should look for buying Muthoot Finance with a stop loss of Rs 1,075.”
“The other stock which we like is Cipla and the reason is because Cipla has also taken a lot of time, it is forming some base building formation close to Rs 630-640 levels. So, with a stop loss at Rs 625 we should look for adding Cipla also because here if we see any breakout, then the stock can move to the levels of maybe Rs 680-690 which is decent upside from current levels.”
#CNBCTV18Exclusive | Sources say lenders have proposed to set up a power-sector focussed asset reconstruction co.
New entity to manage stressed power cos to be called ‘SPARC’. NTPC, REC, PFC, Power Grid, SBI expected to participate in SPARC. pic.twitter.com/lBdPAaagyJ
— CNBC-TV18 (@CNBCTV18Live) July 16, 2020
Oil prices ease after OPEC, allies agree to taper oil supply curbs
Oil prices eased on Thursday after OPEC and allies such as Russia agreed to taper record supply curbs from August, though the drop was cushioned by hopes for a swift US demand pick-up after a big drawdown from the country’s crude stocks. Brent crude LCOc1 fell 27 cents, or 0.6 percent, to $43.52 a barrel by 0439 GMT, and U.S. West Texas Intermediate (WTI) crude CLc1 dropped 32 cents, or 0.8 percent, to $40.88 a barrel. They rose 2 percent the previous day, helped by the US crude inventories drop.
Federal Bank share price jump 4% after June quarter results; Citi initiates buy
Shares of Federal Bank rallied over 7 percent after the bank reported better than expected earnings in the first quarter of fiscal 2020.The stock gained as much as 7.72 percent to Rs 53.70 on the BSE. The bank reported 4.3 percent rise in net profit to Rs 400.77 crore in Q1FY21 as against Rs 384.2 crore in the year-ago period. CNBC-TV18 analysts’ poll had an estimated net profit of Rs 295.8 crore. Net interest income rose 12.3 percent to Rs 1,296.4 crore from Rs 1,154.2 crore, YoY. Citi maintained Buy rating with a target price of Rs 70 per share. The brokerage said that the liability traction of the bank remains strong, which should support NIM. However, slippage from moratorium is key to watch out for. It raise FY21-22 earnings estimates by 1-2 percent.
Rossari Biotech IPO huge hit among investors, subscribed about 79 times on final day of bidding
The initial public offer (IPO) of specialty chemicals manufacturing firm Rossari Biotech was subscribed a whopping 79.37 times on the last day of bidding on Wednesday. The Rs 496-crore IPO received bids for 64,87,33,645 shares against the total issue size of 81,73,530 shares, according to data available with the NSE. The category reserved for qualified institutional buyers (QIBs) was subscribed 85.26 times, non-institutional investors 239.83 times, while retail portion was subscribed 7.23 times, according to merchant banking sources.
Infosys shares surge 10% to hit 52-week high; lift Nifty IT up 4.5%
Shares of IT major Infosys hit its 10-percent upper circuit to reach its 52-week high of Rs 914.55 per share on Thursday after the firm’s earnings beat street estimates. The street also cheered the FY21 revenue guidance issued by the firm. It was the first firm in the IT sector to do so in the June quarter. The rise in Infosys stock lifted the Nifty IT index up over 4.5 percent. In comparison, the Nifty50 index was trading flat. Other IT stocks also surged in the opening trade with HCL Tech, L&T Infotech, and TCS, up between 3 percent and 4.5 percent.
Opening Bell: Sensex, Nifty open higher led by IT stocks; Infosys up 10% post Q1 earnings
Indian Indices opened higher on Thursday led by gains in IT stocks after Infosys’ Q1 earnings beat street estimates and it provided a revenue guidance for FY21 unlike peers. At 9:18 am, the Sensex was up 108 points at 36,160, while the Nifty gained 55 points to 10,674. However, gains were capped by decline in index hevyweights RIl, HDFC twins. Infosys, HCL Tech, Tech Mahindra, TCS, and Sun Pharma were the top gainers, rising up to 10 percent while PowerGrid, ITC, HDFC, Tata Steel, and Kotak Bank were the top losers.
India posts first trade surplus in 18 years as coronavirus hits imports
India posted a trade surplus of $790 million in June, its first in over 18 years, with imports plunging as the coronavirus pandemic depressed domestic demand for crude oil, gold and other industrial products, reflecting a slowing economy. Indian exports and imports have been falling since March and worsening India-China relations, shrinking global demand and disruptions in supply chains are likely to pressure the trade outlook over the next few quarters, analysts said. India last posted a trade surplus – a slim $10 million – in January 2002, according to Refinitiv data.
JUST IN: China says the country’s GDP grew by 3.2% in the second quarter of this year, compared to a year ago.
Twitter accounts of Bezos, Biden, Gates, Obama, others hacked in Bitcoin scam
Unidentified hackers broke into the Twitter accounts of technology moguls, politicians, celebrities and major companies Wednesday in an apparent Bitcoin scam. The ruse included bogus tweets from former President Barack Obama, Democratic presidential front-runner Joe Biden, Mike Bloomberg and a number of tech billionaires including Amazon CEO Jeff Bezos, Microsoft co-founder Bill Gates and Tesla CEO Elon Musk. Celebrities Kanye West and his wife, Kim Kardashian West, were also hacked. The fake tweets offered to send $2,000 for every $1,000 were sent to an anonymous Bitcoin address.
Infosys reports Q1 net profit at Rs 4,233 crore, beats estimates
Bluechip IT services company, Infosys reported a profit of Rs 4,233 crore for June quarter. This is ahead of average of estimates of analysts polled by CNBC-TV18. Analysts had projected the figure at Rs 3,950 crore. The company had reported a net profit (before minority interest) of Rs 3,802 crore in the corresponding quarter last year, it said in a BSE filing. Its revenue grew 8.5 per cent to Rs 23,665 crore in the quarter under review from Rs 21,803 crore in the corresponding period last fiscal, it added.
First up, here is quick catchup of what happened in the markets on Wednesday
The Indian equity market gave up all gains to end flat on Wednesday after shares of Reliance Industries plunged as much as 6 percent during its 43rd annual general meeting. The stock fell sharply after Chairman and Managing Director Mukesh Ambani said that the proposed deal with Saudi Aramco has not progressed as per the plan. At close, Sensex ended 19 points higher to 36,052 while the Nifty50 index ended at 10,635, up 28 points. Broader market slipped in the last hour of trade and ended in the red, Nifty Midcap 100 and Nifty Smallcap 100 index fell 0.61 percent and 0.07 percent lower.
Welcome to CNBC-TV18’s Market Live Blog
Good morning, readers! This is the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!