It was feared that the economic slowdown in Europe and the US would affect the IT sector, but that has not happened. Contrarily, the majority of businesses have reported strong growth, even in Europe. While the situation is volatile, companies are confident of navigating the same successfully.
Hemang Jani on why he would avoid Tata Steel, go for HCL Tech, SBI now
“Some of the midcap IT names have shown a bit of a resilience and when we look at the numbers – be it MindTree, LTI, LTTS and Persistent Systems – many of these companies have delivered extremely good sets of numbers and improved margins. There is a case for some sort of a revival in the broader IT space and some of these midcap names also.”
Market to consolidate until the end of December: Siddhartha Khemka
“Larger IT deals are generally awarded to companies with a larger size and so LTI-MindTree combine will now be eligible to bid for even larger deals and that should be positive for the company. It will put some pressure on some of the existing players. Wipro has been lagging in terms of growth compared to peers while HCL Tech has been focussing on a different segment and is trying to improve growth.”
L&T Infotech set to enter MSCI Global Large-cap index post merger: Nuvama Wealth
“To the best of our understanding of the existing methodology and the recently floated consultation paper, we believe LTI sports very little chances to find its way into the Nifty 50 at the Mar-23 review,” said Abhilash Pagaria, head - alternative and quantitative research
LTIMindtree has a great opportunity in cross selling, up-selling & creating wallet share: Debashis Chatterjee
“At this point of time, more focus is on how do you do more cross sell and up sell given the 700 plus clients that we have and there is no overlap in terms of clients. There are very minimal overlaps and 10-12 clients which both LTI and Mindtree were servicing. So we have a great opportunity in terms of cross selling and up-selling and creating wallet share.”
Why LTI-Mindtree merger doesn’t make it the hottest couple on D-Street yet
Analysts said the merger creates a strong challenger in the Indian IT space with a $4.1 billion revenue run-rate as the combined entity has significant revenue synergies owing to the complementary nature of clients and service offerings.
Kunal Shah explains why metal stocks could be in limelight this week
For Nifty, 18,100 will act as a support level which will act as a cushion for the bulls, and for Bank Nifty 41,500 should act as strong support. The upside visible targets for Bank Nifty is 43,500-44,000. The metal index on the other end has witnessed strong buying throughout the week and is likely to continue the momentum on the upside. "
Continue to bet on 2 Adani Group stocks; avoid the rest: Sudip Bandyopadhyay
"The way the Adani Group company prices have moved up, I think the least upward movement we have seen and in terms of valuation also Adani Port probably is best positioned for an investor to start buying into. It is a long-term story. They have a fantastic business going, they have acquired ports strategically on the eastern coast as well and that puts them in an enviable position for the future as far as Indian imports and exports are concerned.That is a company I am definitely willing to bet on."
The company is in the process of amalgamating Mindtree with itself, which was approved by its shareholders and unsecured creditors on August 10. LTI in its filing shared that the National Company Law Tribunal, Mumbai bench approved the merger on September 19, while NCLT Bengaluru has reserved its order on the same.
Mindtree growth story will continue as we go along even with the merged entity: CEO
“The margin story is not one quarter story. If you look at our margin story this is the eighth consecutive quarter where we have done a 20% plus EBITDA and it is a discipline that you bring in and fortunately for us, we had set the discipline right upfront where this entire management change happened and that is what has helped us in terms of retaining the margin.”
Limited upside potential in Mindtree after Q2 results, says Motilal Oswal
Brokerage maintained ‘neutral rating on Mindtree due to its fair valuations , softness in retail and constraints on management bandwidth because of its impending merger with L&T Infotech
An early Diwali or a relief rally? Ajay Srivastava answers
“This is the kind of scenario which tells us that you have to stick with the big ticket winners in the market and expect that the share price crash laggards will catch up. But I think it is going to be a very flawed strategy in this market because typically the concept is it has fallen 40% and so I will get a 20% return. That strategy is now clearly getting out of the market.”
Hot Stocks: Brokerages on Tata Motors, Infosys, Mindtree and Ambuja Cement
CLSA maintained an outperform rating on Tata Motors with a target price of Rs 473. The company's near-term demand for CVs is strong but the cycle may peak in FY25. The stocks standalone business firing on all cylinders and new launches to aid market share improvement, it said.
As the Sensex rallied over 1,000 points on Friday, investors were left richer by around Rs 4 lakh crore as the total market capitalisation of all BSE-listed stocks shot up to Rs 273.82 lakh crore.
SGX Nifty down 50 points; here's what changed for market while you were sleeping
Asian stocks opened mostly lower Thursday after shares on Wall Street eased overnight ahead of the release of US inflation data. MSCI's index of Asia-Pacific shares outside Japan was trading 0.42 per cent lower.
SGX Nifty down 50 points; here's what changed for market while you were sleeping
Asian stocks opened mostly lower Thursday after shares on Wall Street eased overnight ahead of the release of US inflation data. MSCI's index of Asia-Pacific shares outside Japan was trading 0.42 per cent lower.
SGX Nifty down 50 points; here's what changed for market while you were sleeping
Asian stocks opened mostly lower Thursday after shares on Wall Street eased overnight ahead of the release of US inflation data. MSCI's index of Asia-Pacific shares outside Japan was trading 0.42 per cent lower.
SGX Nifty down 50 points; here's what changed for market while you were sleeping
Asian stocks opened mostly lower Thursday after shares on Wall Street eased overnight ahead of the release of US inflation data. MSCI's index of Asia-Pacific shares outside Japan was trading 0.42 per cent lower.
Rs 9,000 crore selloff! Should you follow FIIs in dumping IT stocks?
Analysts say the IT sector is expected to post reasonably strong Q2 topline performance with minimal adverse impact from the current volatile environment. However, margins may remain a mixed bag due to continued supply-side pressure with elevated attrition and individual impact from wage hikes.
ETMarkets Smart Talk: Titan could scale new high & cross Rs 3,000 mark: Jatin Gohil
Following its impressive show in Q2 business update, Titan shares ended 5.2% higher on Friday and closed a tad below its lifetime closing high. “We believe the stock will surpass its lifetime high of Rs 2,768 and explore uncharted territory, which could take it towards Rs 3,000,” says Jatin Gohil, Technical and Derivative Research Analyst at Reliance Securities, in this interview with ETMarkets. Edited excerpts:
IT sector Q2 earnings preview: New deals, guidance in focus amid deteriorating macros
HDFC Securities is expecting a 242 basis points (bps) drop in the EBIT margins on a yearly basis for the larger IT players, whereas second rug IT counters may see a 1 per cent compression, taking the average hit on the entire sector to 228 bps.Management commentary by Indian IT Services players has been positive post 1QFY23, but the street will be looking beyond this, particularly the guidance for the future.
TCS & Infosys may have 100 bps and 60 bps sequential improvement, respectively: Abhishek Bhandari
"Among the three-four sub-sectors of technology, which could see a lower spending from next years perspective, technology spending, particularly in IT services, figures in the top four"
Down but not out! Why this year’s worst-performing sector is still a good buy-on-dip play
The Nifty IT index is still overvalued when compared to the pre-COVID levels. Even after the recent correction, stocks such as Mphasis, Mindtree, and Persistent Systems are trading at a 33-45% premium to their 10-year average.