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Sonata Software to consider bonus issue on July 25Sonata Software said that the company board on July 25 may consider proposal for issue of bonus shares. The board will also consider standalone as well as consolidated unaudited financial results of the company for Q1FY23 on the same date.
Credit Suisse View on IndusInd Bank
Foreign broking house Credit Suisse has kept ‘outperform’ call on the stock with a target price Rs 1,150 per share.
The Q1FY23 steadily moving towards RoE normalisation as company reported strong operating performance in Q1, due to healthy growth and stable margin.
The RoA and RoEs have steadily improved to 1.6 percent and 13 percent as credit costs moderate, while gross slippages were elevated.
The 40 percent of gross slippages were from restructured book, down 50 bps QoQ to 2.1 percent of loans, reported CNBC-TV18.
Market at 10 AMBenchmark indices were trading with marginal gains in the volatile session.The Sensex was up 117.63 points or 0.21% at 55515.16, and the Nifty was up 37.90 points or 0.23% at 16558.70. About 1819 shares have advanced, 866 shares declined, and 133 shares are unchanged.
Mastek Q1 Earnings:
Mastek has reported 3.4 percent fall in its June quarter consolidated net profit at Rs 77.16 crore versus `Rs 9.9 crore and revenue was down 1.9% at Rs 570.20 crore against Rs 581.5 crore, QoQ.
Mastek was quoting at Rs 2,048.45, down Rs 29.95, or 1.44 percent on the BSE.
BuzzingWipro share price fell in the early trade on July 21 a day after the company announced its June quarter earnings.Wipro on July 20 reported a 20.93 percent year-on-year (YoY) decline in its consolidated profit after tax (PAT) at Rs 2,563.6 crore for the quarter ended June as compared to a PAT of Rs 3,242.6 crore recorded during the same period last year. On a sequential basis, the profit fell 16.96 percent.The consolidated total revenue for the Bengaluru-based IT services company rose 15.51 percent on-year to Rs 22,001 crore as against a revenue of Rs 19,045 crore registered in the year-ago quarter. On a sequential basis, the revenue is higher by 2.98 percent.
Buzzing:IndusInd Bank share price climbed 3 percent in early trade on July 21 – a day after the company reported its June quarter earnings.IndusInd Bank on July 20 reported a 60.5 percent year-on-year rise in net profit at Rs 1,631.1 crore for the quarter ended June, which was above the analyst expectation of Rs 1,423.5 crore.The rise in net profit was helped by a 30 percent on-year fall in provisions as well as a 16 percent growth in net interest income.The bank provided Rs 1,250.99 crore towards bad loans during the quarter, far lower than the Rs 1,779.33 crore made in the corresponding quarter a year ago.
BSE Realty index rose 1 percent supported by the Godrej Properties, Phoenix Mills, Macrotech Developers
Gold Prices Update:
Gold prices fell on Thursday to their lowest in nearly a year, as prospects of more interest rate hikes by major central banks to combat soaring inflation weighed on bullion’s appeal.
Although gold is seen as a hedge against inflation, rising interest rates increase the opportunity cost of holding bullion, which pays no interest.
Spot gold was down 0.3% at $1,691.84 per ounce by 0313 GMT, after falling to its lowest since early August 2021 at $1,689.40 earlier in the session.
U.S. gold futures fell 0.6% to $1,690.40 per ounce.
Sharekhan View on Wipro
Though the company’s turnaround journey has been progressing well in certain pockets, supply side pressures and higher exposure to discretionary spending after recent acquisitions (CAPCO, Rizing, among others) would affect earnings growth amid an economic slowdown.
We expect Wipro to report USD revenue/earnings CAGR of 10 percent/5 percent over FY2022-FY2024E. At CMP, the stock trades at an expensive valuation of 19x/17x its FY2023/FY2024 earnings estimates. We believe the company has limited margin levers to offset headwinds in next couple of quarter. Hence, we maintain a ‘hold’ rating on Wipro with a price target (PT) of Rs 460.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
With around 8.5% rally from the June lows, Nifty is likely to consolidate around the present levels before making its next move, which will be influenced by the outcome of the ECB and Fed meetings due on 21st and 27th July respectively.
The Fed is likely to raise the rate by 75 bp and ECB, perhaps, by 50 bp. But more important than the rate hikes, their commentary on the trajectory of inflation and economic growth would be closely watched. If there are indications that inflation has peaked and is likely to trend down, markets would respond positively. If not, the market response would be negative.
In the domestic market, the biggest positive is FIIs turning buyers. Even if they turn sellers at higher levels, the intensity of selling will be much lower than in the last several months. IT and financials which bore the brunt of FII selling are the likely beneficiaries of the change in strategy of FIIs.