Latest news with #HCLTechnologies
Economic Times
3 days ago
- Business
- Economic Times
How should you position yourself in IT and pharma now? Neeraj Dewan answers
Neeraj Dewan, Market Expert suggests a cautious approach to IT stocks. The IT sector's result season is not promising. Investors should await clarity on earnings and US business trends. Holding TCS and Infosys might be wise. Pharma tariffs are creating confusion. Focus on individual pharma stocks. Investors should stay invested in their chosen stocks. Monitor tariff developments closely for potential impacts. ADVERTISEMENT After the TCS as well as HCL Technologies Q1 results, it seems like IT will need to be avoided this quarter too? Neeraj Dewan: Yes, definitely the beginning of the result season has not been good for IT. It was on expected lines because we are not expecting good results from IT this quarter and even the immediate outlook is not that clear. So, one should wait to get more clarity; one, what is going to happen on the earnings front and second, what clues we have from the US regarding business going ahead. So, one should really wait and see how it goes. As far as largecap IT is concerned, if TCS, Infosys consolidate in this region and stop correcting, maybe it is not a good idea to sell them at this point. One should hold on to them to get more clarity or start accumulating. A lot of things are happening in the pharma space. There is some stock specific action from Zydus Life, positive news flow coming in for Zydus as well as Biocon for their diabetes drug Kirsty. Other than that, there is some commentary coming in from Trump where he is saying that pharma tariffs could be announced by the end of this month. What is your take on the sector? How should investors position themselves in this sector? Neeraj Dewan: As far as the tariffs are concerned, there are two things. One, Trump has been speaking about pharma tariffs for quite some time. Off and on, he comes out with statements but the market has not reacted too much and stocks have been doing well. Second, there are these country specific deals. There is still no clarity if India will have a country-specific deal. If there will be separate tariffs for all industries, then what is the idea of having a country specific deal?There is a lot of confusion over tariffs as of now. So, I do not think stocks will react too much. For an investor, it would be best to just invest in the stocks we like and stay invested in them as far as pharma is concerned. Pharma has been a stock specific bet and one cannot really invest across because now the stocks are not that cheap. They are quite fairly valued. We will get pockets there. We will get stocks which are doing very well and stock specific moves will come. So, you should stay invested in the ones you are betting on and then see how it goes as far as the tariffs are concerned. Is there merit in looking at the two-wheeler space right now? Yesterday, the entire pack was fairly charged up. We have seen an early onset of monsoon as well. The distribution so far as well pretty much seems to be on course. Is that going to reflect in the two-wheeler numbers? Neeraj Dewan: Yes, I think so because bigger companies like Hero Motors and Bajaj Auto have come out with some statements. They are going to be aggressive and they are looking at growth going ahead. We have seen that if we have a good monsoon, there is definitely a pickup in demand in the two-wheeler space. Going ahead, since inflation is low, there is excess liquidity in the system, and we are having a good monsoon as well, it will all augur well for the sector. ADVERTISEMENT Hero Motor is trading at discount to its long-term averages. At this price, getting into Hero Motor should make sense for a long-term investor. Similarly, in Bajaj Auto, we are yet to see some improvement happening. Let us see the results for this quarter and then we will take a call on Bajaj Auto. Hero Motor definitely as they are quoting 20 times historical and Bajaj Auto is at close to 30 times historical; 12 months trailing are showing attractive valuations. One should consider them for long-term investing. In terms of the stock market, insurance has been a nonstarter barring a few odd moves here and there. How should insurance be looked at? It may be a structural story but the stocks have not performed at all. Neeraj Dewan: You are right, it is a structural story where five-six years back, everyone believed it would be a good value generator. But everyone got invested also. You see long-term portfolios, they are holding on to some good insurance stock. The funds have been holding on to them. But that follow-up big buying is not coming because there is no exceptional gain which comes specifically from life insurance companies. ADVERTISEMENT Life insurance companies have been a drag and going ahead, we are looking at 10-12% return. We can still get that kind of return in this sector. But general insurance is one where there is still good scope. There can be growth there and we have seen those companies doing better also. So, if I have to pick one of the two, I will pick general insurance. (You can now subscribe to our ETMarkets WhatsApp channel)
Mint
3 days ago
- Business
- Mint
Indias Volatility Index Dips on Easing Tariff Concerns, Rate Cut Hopes
(Bloomberg) -- Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at: Good morning, this is Chiranjivi Chakraborty, an equities reporter in Mumbai. Local traders are set to start the day on the backfoot following the selloff on Wall Street and a choppy trend in regional markets. Till India's trade deal with the US is sealed, big moves could likely be limited to companies announcing quarterly numbers. Tech Mahindra's results later in the day will be closely watched after underwhelming numbers from TCS and HCL Technologies have further soured the outlook for the IT sector. Volatility cools on tariff relief, rate cut hopes India's 30-day ahead volatility — often called the fear index — has declined to its lowest level since April 2024, reflecting growing investor belief that President Donald Trump's tariff threats are largely rhetorical and aimed at negotiating. Meanwhile, local sentiment is getting a lift after the RBI Governor signaled Tuesday that the central bank will continue to cut interest rates if inflation eases or growth slows. Expanding valuations, shrinking returns Valuations in the BSE 500 index have stretched since June 20, according to analysts at Ambit. They point out that around 43% of the index's stocks trade at more than five times their price-to-sales ratio, compared with about 31% seen during the peak of the 2007 bull market. As a result, median returns have started to shrink. Ambit also warns that inflows into mutual funds may come under pressure, especially as returns from some of the largest small- and mid-cap funds begin to moderate. Ola's long journey to recovery After losing over $5 billion in market value from its peak, Ola Electric's latest quarterly results brought some relief. But the e-scooter maker needs to deliver on the bullish tone struck during its recent earnings call. HSBC analysts see a pragmatic approach in the company's outlook and execution strategy, but warn that most of the potential gains are already priced in. Analyst opinions are split: three recommend buying, three suggest selling, and two advise holding. The consensus points to a modest 6% return over the next year. Three great reads from Bloomberg today: HCL Technologies may have delivered a weaker-than-expected first-quarter performance, but there's still reason for optimism. According to Jefferies, the company's newfound status as the top revenue earner in the IT sector could help it maintain a valuation premium over larger rivals such as Infosys and Tata Consultancy Services. What's more, HCL has raised its growth outlook for fiscal 2026 to 3%-5% — the highest among India's top five IT services firms, Jefferies adds. To read India Markets Buzz every day, follow Bloomberg India on WhatsApp. Sign up here. --With assistance from Ashutosh Joshi, Alex Gabriel Simon and Kartik Goyal. More stories like this are available on
Bloomberg
3 days ago
- Business
- Bloomberg
India's Volatility Index Dips on Easing Tariff Concerns, Rate Cut Hopes
Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at: Good morning, this is Chiranjivi Chakraborty, an equities reporter in Mumbai. Local traders are set to start the day on the backfoot following the selloff on Wall Street and a choppy trend in regional markets. Till India's trade deal with the US is sealed, big moves could likely be limited to companies announcing quarterly numbers. Tech Mahindra 's results later in the day will be closely watched after underwhelming numbers from TCS and HCL Technologies have further soured the outlook for the IT sector.
Hans India
4 days ago
- Automotive
- Hans India
Trade Setup for July 16: Nifty rebounds above 25,200; Market remains cautiously optimistic
The Indian stock market staged a strong recovery on Tuesday, snapping a four-session losing streak as the Nifty climbed 114 points to close at 25,196. The rally was driven by a positive global setup, cooling domestic inflation, and broad-based buying across sectors. After opening on a firm note, the benchmark index steadily gained through the day, reclaiming the 25,200 level and closing near the session's high. The Sensex and Nifty both rose 0.5%, while the Nifty Midcap index outperformed with a 1% gain. The Nifty Smallcap 100 also hit its highest level since the rally began in April. All sectoral indices ended in the green, with Auto, Healthcare, Pharma, and Consumer Durables among the standout performers. Sentiment was buoyed by June CPI data, which fell to a 77-month low of 2.1%, easing rate concerns and providing a tailwind to equities. Among stocks, HCL Technologies was the top Nifty laggard, falling over 3% after the company cut its FY26 margin guidance. This led to a mixed response from brokerages, citing near-term margin pressures. Looking ahead, market attention will turn to key earnings releases from Tech Mahindra, L&T Technology Services, ITC Hotels, and Ixigo. Meanwhile, Trent is also in focus after athleisure giant Lululemon announced plans to debut in India via a retail and e-commerce partnership with Tata CLiQ. From a technical perspective, analysts remain cautiously optimistic. Nagaraj Shetti of HDFC Securities said a sustained move above 25,350 could drive further upside. Rupak De of LKP Securities noted that while Nifty faced resistance around 25,250, a breakout above 25,260 could pave the way to 25,400. However, if the index fails to hold above 25,260, it may retest support at 25,000 or even 24,900. Vikram Kasat of PL Capital and Nandish Shah of HDFC Securities echoed similar views, citing strong support near 25,000 and resistance around 25,325–25,331. Shah also advised long traders to maintain a stop loss at 25,000. As the market digests earnings and awaits global cues, including US CPI data, traders will watch if bulls can build on this recovery or face renewed resistance.
Business Standard
4 days ago
- Business
- Business Standard
Sensex, Nifty trade in positive terrain; European mrkt advance
The key domestic equity indices traded with moderate gains in afternoon trade, extending their upward momentum on the back of sustained buying interest. Investor focus remained on domestic macroeconomic indicators, global tariff-related cues, and corporate earnings announcements. The Nifty traded above the 25,150 mark. All the sectoral indices on the NSE were traded in green with auto, pharma and realty shares leading the rally. At 13:25 IST, the barometer index, the S&P BSE Sensex advanced 352.92 points or 0.40% to 82,579.84. The Nifty 50 index added 108.80 points or 0.43% to 25,190.85. The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.62% and the S&P BSE Small-Cap index added 1.05%. The market breadth was strong. On the BSE, 2,601 shares rose and 1,318 shares fell. A total of 171 shares were unchanged. Gainers & Losers: Hero Motocorp (up 4.46%), Sun Pharmaceutical Industries (up 2.57%), Bajaj Auto (up 2.26%), Mahindra & Mahindra (up 1.67%) and tata Motors (up 1.41%) were major Nifty gainers. HCL Technologies (down 2.75%), HDFC Life Insurance Company (down 1.50%) and SBI Life Insurance Company (down 1.22%), Eternal (down 0.87%) and Tata Steel (down 0.60%) were major Nifty losers. HCL Technologies fell 2.75% after the company reported a 10.77% drop in net profit to Rs 3,843 crore for the quarter ended 30 June 2025, compared to Rs 4,307 crore in the previous quarter same fiscal. Economy: Indias retail inflation, measured by the Consumer Price Index (CPI), cooled to a multi-year low of 2.10% in June 2025, thanks to a sharp dip in food prices. The data, released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, 14 July 2025, marks the lowest year-on-year inflation rate since January 2019. For comparison, CPI inflation stood at 2.82% in May 2025 and 5.08% in June 2024. Stocks in Spotlight: Deepak Fertilisers & Petrochemicals Corporation rallied 3% after the company entered into a long-term agreement with Petronet LNG (PLL) for the regasification of Liquefied Natural Gas (LNG). Tata Technologies advanced 1.63% after the company has reported 5.1% increase in consolidated net profit to Rs 170.3 crore despite a 1.9% fall in revenue from operations to Rs 1,244.3 crore in Q1 FY26 as compared with Q1 FY25. Den Networks added 2.47% after the cable TV distributor consolidated net profit jumped 23.90% to Rs 53.64 crore in Q1 FY26 as against Rs 43.29 crore posted in Q1 FY25. RailTel Corporation of India rose 2.32% after the company secured an order worth Rs 264 crore from East Central Railway for the implementation of the Kavach system, the indigenous Train Collision Avoidance System (TCAS). Rallis India jumped 3.01 after the pesticide makers standalone net profit surged 97.92% to Rs 95 on a 22.22% increase in revenue from operations to Rs 957 crore in Q1 FY26 over Q1 FY25. Global Markets: European shares advanced while most Asian indices edged higher on Tuesday after China's GDP grew 5.2% in the second quarter, according to data from the National Bureau of Statistics. While the growth beat market expectations, it still marked a slowdown from the 5.4% seen in the first quarter. Junes economic indicators in China offered a mixed bag. Retail sales growth eased to 4.8% year-on-year, down from 6.4% in May. On the brighter side, industrial output beat forecasts, rising 6.8% year-on-year, while fixed asset investment climbed 2.8% in the first half of 2025. The urban unemployment rate held steady at 5% in June, unchanged from May but lower than the two-year high of 5.4% in February. Over in the US, the S&P 500 inched up on Monday after President Donald Trump signaled willingness to negotiate on trade, including with the European Union. The gesture helped calm market jitters over a potential global trade war. By the closing bell on the NYSE, the Dow Jones Industrial Average was up 0.20%, the S&P 500 gained 0.14%, and the NASDAQ Composite added 0.27%. Among standout movers, shares of Palantir Technologies surged 4.96%, or $7.05, to hit an all-time high of $149.15. Boeing Co also soared to a 52-week high, rising 1.62% or $3.67 to $230.51.
