V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
Strong results from Infy, Wipro and Mindtree indicate that the market disappointing results from TCS was a one off. Even though high attrition is a challenge for the sector, strong deal wins and robust demand are clear positives. IT is likely to resume its leadership position since the prospects for the sector look bright for the next many years on the back of accelerating digitization by businesses globally.
Strong performance of HDFC Bank indicates good Q2 results and the banking major joining the bull rally. Globally, inflation continues to be a worry and continuing disruption in global supply chains is an area of concern.
The FOMC minutes indicate that tapering is on course, possibly starting November and ending by mid-2022. Since this is a known event markets are likely to discount it before the actual announcement.
Since there are no known triggers for a sharp correction in the short run and the market momentum continues to be strong, the exuberant retail investors are likely to drive the markets further up even though seasoned investors are worried about the excessive valuations.
Nifty IT index rose nearly 3 percent led by the Mindtree, Wipro, Mphasis
Gainers and losers on the BSE Sensex:
Market Opens: Indian indices opened at fresh record high on October 14 with Nifty above 18250
At 09:17 IST, the Sensex was up 388.11 points or 0.64% at 61125.16, and the Nifty was up 117.70 points or 0.65% at 18279.50. About 1503 shares have advanced, 450 shares declined, and 86 shares are unchanged.
Wipro, Infosys, Tech Mahindra, Tata Motors and Adani Ports were among the major gainers on the Nifty.
Indian markets are likely to open higher on the back of positive global cues as traders assessed the durability of the economic recovery to inflationary pressures and a looming reduction in the Federal Reserve’s Pandemic-era stimulus. US markets ended mostly higher amid release of new earnings data and key inflation report.
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As the Nifty50 has given a breakout on the daily chart, every dip should be utilized as a buying opportunity. The immediate support for the Nifty50 is placed near 17,950 – 18,000 levels which was the previous resistance zone for the index. And the resistance or the next immediate target for the Nifty comes near 18,500 levels.
Market at pre-open: Benchmark indices are trading higher in the pre-opening session amid mixed global cues.
At 09:02 IST, the Sensex was up 176.03 points or 0.29% at 60913.08, and the Nifty was up 118.50 points or 0.65% at 18280.30.
Mindtree Q2 results
Midcap IT services company Mindtree on October 13 reported healthy earnings growth in the July-September period, as consolidated profit grew by 16.2 percent and revenue 12.8 percent from the previous quarter.
Profit during the quarter came in at Rs 398.9 crore compared to Rs 343.4 crore in the June quarter and revenue rose to Rs 2,586.2 crore from Rs 2,291.7 crore in the same period.
The revenue in dollar terms showed a 12.8 percent sequential growth at $350.1 million for Q2FY22 and the same in constant currency grew at 13.4 percent.
The Bengaluru-based IT services company has approved an interim dividend of Rs 10 per share.
Investors Meeting Schedule:
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 937.31 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 431.72 crore in the Indian equity market on October 13, as per provisional data available on the NSE.
Wipro Q2 Result
Wipro on October 13 reported a consolidated net profit of Rs 2,930.7 crore for the quarter ended September 2021, thus registering a decline of 9.6 percent due to contraction in margins after wage hike and amortisation charge on Capco acquisition. However, the profit grew by 18.9 percent compared to the corresponding quarter last fiscal.
Gross revenue increased 7.8 percent sequentially to Rs 19,760.7 crore during the period, and 30.1 percent year-on-year (YoY).
IT services operating margin for the September 2021 quarter was at 17.8 percent, a decline of 104 bps as compared to the previous quarter, and fell 140 bps YoY.
HCL Technologies Q2 Preview | Deal Wins, FY22 Revenue And Margin Guidance Key Aspects To Watch Out For
HCL Technologies is going to announce its September quarter earnings today. Experts expect good quarterly earnings on October 14, with likely robust deal wins and stable margin, driven by growth across verticals, and more than 12 percent revenue growth guidance for the financial year FY22 compared to FY21.