A question arises as to why IT companies have done well despite the fear of a recession and a potential downturn in the US and Europe. Has the market overlooked some important detail, or is this just a temporary surge?

"Affordable housing, electricity, Nal se Jal, and higher manufacturing would remain the prime focus for the government. Infra spending will get a further push. Capital expenditure can be increased from 2.9% of GDP to 3.5% of GDP."

While announcing its September quarter earnings, HCL Tech had raised the constant currency revenue growth guidance to 13.5-14.5% for FY23. But 2 months later, it said that growth is likely to be at the lower end of this range.

While TCS reported strong numbers for the December quarter, it wasnt good enough to entice investors as risks to earnings growth persists amid the macroeconomic slowdown in Europe and US.

Starting January 27, stocks from Reliance Industries Ltd. to Tata Consultancy Services Ltd. and Adani Enterprises Ltd. — together comprising 80% of the country’s equity market — will be settled on a ‘trade-plus-one-day’ timeline versus the earlier two-day process.

Price taking breather above the recent falling channel breakout area, signaling pause before next up move.

In terms of geographies, North America grew 19.6% year on year while Europe just reported 0.2% growth. The company said Europes underperformance was largely due to currency impact seen previously and, going forward, the market is expected to be on a “good growth trajectory” due the strong deal wins this quarter.

Revenue from both the U.S. and Europe, which account for about 80% of the company's total revenue rose in the third quarter, despite rising concerns over growth and tech spending in export markets, especially Europe.

Tata Consultancy Services, incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 1236173.92 Crore) operating in IT Software sector.

A sharp slowdown in net hiring, muted growth outlook in 4Q and a potentially slower conversion of bookings to revenues points to a sharp growth moderation for Indian IT firms. However, falling attrition and ongoing improvement in the employee pyramid should support margin recovery

We believe the slowdown impact would be more broad-based, and could be more in the hi-tech segment where clients may not opt for upgrades and rather continue with the current processes,” said Mitul Shah, head of research at Reliance Securities.

Higher base above upper band of falling channel with decline of CY22 provides favourable risk reward.

When a company goes ex-dividend on a particular date, its stock does not carry the value of the next dividend payment. Usually, an ex-dividend date is set one or two days before the record date.

"Wipro has a considerable exposure on the energy side when it comes to its analysis from a vertical point of view and that has not yet turned stable. I would say what the investors look for in the stocks is the momentum gathering up in terms of top line through deal wins."

The NSE Nifty index closed 61.75 points down at 17894.85

This multibagger stock from the garments and apparels segment is scheduled to meet for its board meeting for considering bonus share issue and stock split. The companys stock in a 1-year period has generated a return of 578

Overall, the revenue growth band of the top-tier IT players was pegged at between 14-20 per cent for Q3FY23, compared to the year ago period. Seen sequentially, the topline growth for the large IT pack ranged between three per cent and eight per cent versus previous September quarter.

“China reopening is a big theme for the global commodity prices and demand which could lead to some support for the metal stocks specifically. If you look at some of the base metal prices, they have been hitting three month, six month highs. ”

Right now it is the internet and the technology shares of China and the consumption oriented ones which are getting money, so a little surprising. Secondly, given the dollar level, normally you would see emerging market inflows coming in and growth stories like India tend to benefit whenever the dollar index starts to go down.

Moreover, adding too many stocks can be tedious as you wont be able to keep a check on each companys quarterly reports, annual reports, balance sheets, and other financials.

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.

Wipro won deals worth $4.3 billion in the quarter, up by 26% YoY, with large deal bookings rising by 69% YoY. The growth in large deal booking was much stronger than the 24% growth reported for the September quarter.

“Our top pick would remain Infosys which we have been bullish on since the last two-three quarters. Within the IT pack, we like Infosys only and last quarter we upgraded HCL Tech from hold to buy. The second bet would be HCL Tech. We have a buy on Wipro but after this commentary, we would able to come out with details in terms of whether we will maintain the positive stance”

Sharekhan is bullish on Tata Consultancy Services has recommended buy rating on the stock with a target price of Rs 3650 in its research report dated January 09, 2023.

Last two-three quarters we moderated and downgraded the sector but Infosys and HCL Tech remained our top picks.

“If there is a recession or there is a hard landing, there could be one or two quarters where the pipelines will go down a bit and there would be some kind of pressure but on an overall basis, we will see a much bigger transformation in deals movement because it will lead to massive cost rationalisation. So,in the long term, it will be better.”

But the Bengaluru-headquartered company's managing director, Salil Parekh, warned that there were signs of a "slowing global economy" that was delaying decision making in a few verticals.

Wipros peers Tata Consultancy Services and Infosys reported strong numbers for the third quarter, with the latter also raising its revenue growth guidance for the current financial year.It will be interesting to see how Wipro expects the March quarter to pan out. The software major usually gives quarterly guidance.

The Hyderabad-based company benefited from the four acquisitions it did last year, including its largest ever of Finnish engineering services firm Citec which helped expand its footprint in Europe.

"We expect a relatively short recession in the US in 2Q23 and 3Q23 but the recovery is unlikely to be rapid with GDP growth still subdued at 1.6% in 2024. We forecast that the Eurozone QoQ GDP growth will be negative in 1Q23 before turning positive in the second quarter," Fitch said.

​In our opinion it is already time to start moving closer to neutral into IT. The logic being that even though we believe that the next two quarters may not deliver great numbers but looking forward if you believe that the US recession is likely to be a shallow one and the world at large is not going through a big recession then in FY25 or at the fag end of FY24 the order books and the contracts should start coming back and people will start positioning as soon as they get a whiff that the macro is not as bad as envisaged.

Infosys Ltd is likely to report strong double-digit year-on-year (YoY) growth in both the topline and bottomline due to strong deal pipeline and execution. Consolidated revenue is seen rising nearly 19% on year, and 4% sequentially to Rs 37,890 crore, according to the average of estimates given by 10 brokerages. The net profit is seen rising 11% on year and 7.2% sequentially to Rs 6,455.40 crore.