Stocks to watch: Infosys, HCL Tech, Wipro, M&M and more

IT equities are likely to be in the spotlight following the release of stronger-than-expected quarterly results from Infosys and HCL Technologies, and Wipro is slated to report earnings on Friday, so keep an eye on these companies’ stocks.

Aside from the quarterly results, the markets have a significant amount of news flow to process this morning. The retail inflation rate in India reached its lowest level in 12 months in December, while the IIP rose to its highest level in 5 months in November.

In spite of this, inflation in the United States has decreased to 6.5%, which has raised the possibility that the Federal Reserve would reduce interest rates. After then, the markets in the United States closed with gains of up to 0.6 percentage points.

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In comparison to the spot Nifty 50’s closing price of 17,858 yesterday, the SGX Nifty January futures were quoted at 17,948 this morning at 7:20 AM.

In the meanwhile, the following stocks are anticipated to garner significant attention during trading on Friday.

Infosys: Infosys, a significant player in the information technology industry, has announced good financial results for the third quarter, exceeding Wall Street projections for both net profit and revenue. The net profit of the company for the third fiscal quarter of fiscal year 23 was 6,586 crore rupees, representing an increase of 13.4 percent year over year and 9.4 percent quarter over quarter. To reach Rs. 38,318 crore, revenue increased by 20.2% year over year.

In addition, the company has increased its revenue projection for the fiscal year 2023 as a result of a robust acquisition pipeline. In contrast to the former prediction of 15–16 percentage points of revenue increase, it is now anticipating revenue growth in the range of 16–16.5 percent.

HCL Technologies: HCL Technologies, which is the third-largest IT services provider in India, recorded a gain of 18.8 percent year over year in their net revenue for the third quarter, which came in at 4,096 crore. Due to the fact that the firm anticipates Q4FY23 to experience seasonal slowdown, it revised its higher-end revenue projection for FY23 from 13.5 percent to 14.5 percent to 13.5 percent to 14 percent. Previously, it had projected revenue growth of 13.5 percent to 14.5 percent.

Wipro: The information technology company Wipro is forecasting revenue growth of up to 3 percent quarter-on-quarter (QoQ) to Rs 23,497 crore in the third quarter of fiscal year 23 (Q3FY23), which is in line with the management’s estimate of between 0.5 and 2 percent.

Earnings today: Results for the third quarter will be released on Friday by Wipro, Just Dial, L&T Finance Holdings, Aditya Birla Money, Choice International, Ganesh Housing Corporation, International Travel House, and Rajnish Wellness.

Shriram Finance: On Friday, the private equity firm Apax Partner intends to sell off all of its holdings in the financial services company Shriram Finance through the use of block deals.

Paytm: It has been claimed that the Chinese firm Alibaba has sold half of its stake in One97 Communications for a total of 3.1 percent of the company’s value, which is an indicator that Alibaba is abandoning the Indian market. However, Ant Financial, a subsidiary of Alibaba Group that formerly had a share in Paytm and which still does so today, has not reduced its ownership of that investment.

Lotus Chocolate: Reliance Retail Ventures has issued an open offer to acquire up to 33.39 lakh shares, which represents 26% of the share capital of Lotus Chocolate, for a consideration of Rs 115.50 per share. This offer is being made in light of the fact that Lotus Chocolate is being acquired by Reliance Retail Ventures. The overall cost is estimated to be 38.56 billion rupees. The date range for the open offer begins on February 21 and ends on March 06, 2023.

Rail Vikas Nigam: Rail Vikas Nigam, which is managed by the state, was given a letter of award from Southern Railway for the amount of Rs 38.97 crore.

Cement: The acceleration in demand for cement, along with marginal price hikes of approximately 2-3 percent by cement companies in the October-December quarter (third quarter, or Q3) of 2022-23 may not be enough to cushion the impact of high input costs on the bottom line, according to the estimates that have been revealed by the Bloomberg consensus for the quarter.

Mahindra and Mahindra: As a result of various records that were achieved by the company’s South African subsidiary, the Indian car manufacturer Mahindra & Mahindra was recognised as the most rapidly expanding brand in South Africa for the year 2022. According to the National Association of Automobile Manufacturers of South Africa (NAAMSA), Mahindra South Africa increased its sales volume by a staggering 78% in comparison to 2021. This figure is the highest of all the vehicle brands that report their sales to NAAMSA and is the highest of all the vehicle brands in South Africa.

Anand Rathi Wealth: The brokerage company recorded a year-over-year gain of 35% in Q3FY23 consolidated net revenue, which came in at Rs 43.22 crore. At Rs. 138 crore, consolidated revenue saw a year-over-year increase of 30.6%.

Jewellery maker: The Bureau of Indian Standards (BIS) will add 43 more districts to the list of those required to comply with the hallmark standards for jewellery. At this time, hallmarking of jewellery goods is required to be done in around 288 districts across the country of India.

Stocks in F&O Ban: GNFC and Indiabulls Housing Finance continue to be the only two stocks that are restricted from trading during the F&O ban period on Friday.