The Economic Times daily newspaper is available online now.

    Brokerages retain positive view on Infosys amid headwinds

    Synopsis

    Net open interest, the total number of outstanding positions, in Infosys' stock futures declined as much as 7%, or by roughly 28.6 lakh contracts, in the previous two sessions indicating squaring-off of bearish bets, showed provisional data from stock exchanges.

    Brokerages Retain Positive View on Infosys Amid HeadwindsAgencies
    Shares of Infosys, the country's second-largest IT services company, advanced for the third consecutive session on Friday after better-than-expected third quarter earnings prompted traders to square-off bearish bets. The stock erased early losses and gained 1.56% on the NSE to close at '1,503.65 as most analysts retained their price targets and ratings after the December results. The stock hit an intraday low of '1,468.

    A little over 1.18 crore Infosys shares exchanged hands on the BSE and NSE, nearly twice its average daily volume of 66 lakh shares over the last one month on both the exchanges.

    Net open interest, the total number of outstanding positions, in Infosys' stock futures declined as much as 7%, or by roughly 28.6 lakh contracts, in the previous two sessions indicating squaring-off of bearish bets, showed provisional data from stock exchanges.

    The Nifty IT index closed 0.74% higher from Thursday's - and was the best performing sectoral index - that helped the Nifty reverse its three-day losing streak.

    "Infosys' 3QFY23 result mirrored that of TCS with a solid revenue beat and largely in-line EBIT margin," BNP Paribas observed in a client note. "We expect IT services demand to stay relatively resilient and Indian IT services firms to further benefit from revenue market share gains. TCS and Infosys are our top sector picks, as they should be key beneficiaries of this trend," the note read.

    BNP Paribas maintained its buy rating on Infosys' stock and set a target price of '1,765 apiece - an upside potential of 17.35% from Friday's close.

    Research firm Bernstein is the most optimistic with a target price of '1,810 apiece, while CLSA kept its buy rating with a target price of '1,800.

    US investment firm Jefferies also maintained its buy rating - albeit sounding some caution for the next quarter earnings - with a target price of '1,770. Motilal Oswal also reiterated its buy rating with a target price of '1,760 apiece.




    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in