We expect Mindtree USD revenues to decline by 2.7% YoY for FY21E. This is lower than peers ( We model LTI and Coforge USD revenues to grow by 6.3/4.7% for FY21).While Mindtree has high top account concentration (Microsoft accounts to 29% of total revenues), recent deal wins and ramp ups can gradually lower top account concentration. With limited options in diversified portfolio midcap IT Services companies (LT Infotech, Mindtree, Coforge) coupled with low float in these stocks there is steeper movement in these stock. We value Mindtree at 21x Sep22E EPS (vs 20.5x earlier), which yields a target price of Rs1600/sh. Retain BUY: Centrum Broking
Assets under Management (AUMs) of the Indian Mutual Fund industry declined by 2.3% on m-o-m basis to Rs.26.9 lakh crores and compared with September 2019, the industry rose by 9.6% yoy translating to an asset base addition of Rs.2.4 lakh crores: CARE Ratings
Today rupee got support from the weaker dollar and rebound in the global equities after sharp sell off on Thursday. Indian rupee ended the week with loss of 21 paise at 73.35 a dollar. It pared losses on likely dollar buying by the Reserve Bank of India in spot market. This volatile week ended with slightly optimistic note after President Trump announced he would personally step in to get reluctant Senate Republicans on board for bi-partisan stimulus deal. The risk-on sentiment is back today on hope of US fiscal stimulus and continuation of Brexit talks: Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities
Talk between the UK and the EU are on a knife-edge and with only a couple of days away from the EU summit when the UK Prime Minister decides to get a deal through or not. Although both the UK and the EU see each other as unreasonably intransigent, and the latter is genuinely angry about Britain’s plan to breach international law by rewriting the withdrawal treaty. None wants to be responsible for breaking off talks: Motilal Oswal Finacial Services
Trade deficit shrank sharply to USD2.7bn on a strong recovery in exports. Overall trade activity improved to a seven-month high of -9.1% yoy in Sep’20. Trade activity was robust in drugs & pharma, engineering goods and petroleum. Gold imports slumped to a three-month low after a sharp recovery in Aug’20, indicating an aberration in the last month: Emkay Global Financial Services
There are no fresh cues in the market to react to and that is why we are seeing USDINR spot consolidating in between 73-73.60. Somewhere market has factored in a likelihood of no US stimulus package before the election but knowing Trump, we cannot rule out the fact that he may release some deal next week. Until the deal is released we won’t see optimism in market sentiments and USDINR spot will follow the direct relationship with dollar index. With US elections just around the corner, we expect the uncertainty may lead USDINR spot swing within the broader range of 73-74: Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services
Global Financial markets and the economy have shown interesting historical correlations between Democratic and Republican rule but in either case volatility is unavoidable. We recommend playing volatility to our advantage and hedge the portfolio by buying the December 2020 put option of NIFTY at 11000 level. Secondly, to play the volatility, we recommend a Long straddle (buy NIFTY Dec 12000 CE and PE) at a spread of 800: Edelweiss Broking
AstraZeneca Pharma India Limited has received permission for import and market for cancer drug i.e Acalabrutinib 100mg capsules (Calquence ®) from the Drugs Controller General of India in Form CT-20 (Marketing Authorization- Additional Indication). AstraZeneca Pharma India Limited will launch Calquence® in India on October 21, 2020. Acalabrutinib 100mg capsules Indicated for the treatment of patients with mantle cell lymphoma (MCL) who have received at least one prior therapy or indicated for treatment of patients with chronic lymphocytic leukaemia (CLL)/ small lymphocytic lymphoma (SLL). This is positive development for Astrazeneca Pharma India Limited: Yash Gupta – Equity Research Associate, Angel Broking Ltd
Consumer demand in the Indian market may take a further hit as external remittances are expected to remain muted in the current fiscal year 2020-21. The slow remittance growth is more of a structural issue than transitory and it would further weaken aggregate consumer demand, said a report by India Ratings and Research (Ind-Ra). However, the report suggested that the impact will be restricted to a few states, given their skewed shares in foreign remittances.
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In India, there are more than 5,500 listed companies, which is the highest in the world. In terms of market cap, all companies, apart from the Top-250 companies, fall in the Small-Cap category. This means that there are roughly 5,250 listed small-cap companies (Market cap of <INR 8,000Cr) in India today.
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Mindtree share price tumbled over 11 per cent to Rs 1,264.25 apiece on BSE, even as the IT company posted an 87.9 per cent on-year rise in consolidated net profit of Rs 253.7 crore in the second quarter. The company had registered a net profit of Rs 135 crore in the corresponding quarter of the preceding fiscal.
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We maintain ADD on Cyient, based on strong margin recovery and improving growth outlook ex aerospace. The services segment (~85% of revenue) is down 0.5% QoQ CC, impacted by continued stress in A&D (-11.5% QoQ) offset by strong recovery in Transportation (+21.6% QoQ) and Communication (+7.7% QoQ). The aerospace impact is led by volume contraction in the top account, and recovery will be protracted: HDFC Securities
While Q2FY21 revenue was in line with our expectations gross margins came in ahead of expectations despite currency headwinds EBIDTA and net profits for the quarter too were in line with our expectations. We continue to remain positive on HCL Technologies post the Q2 numbers: Jyoti Roy- DVP- Equity Strategist, Angel Broking Ltd
HCL Technologies share price fell 4.4 per cent to Rs 821 apiece on BSE after the IT company announced July-September quarter results. HCL Tech Q2 net profit came at Rs 3,142 crore in July-September quarter, rising 18.5 per cent. The company had posted a net profit of Rs 2,651 crore in the corresponding period of the last year.
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As for today traders can go for buy in gold at Rs 50,500 levels with the stop loss of Rs 50250 levels for the target of 51200 levels. They can also go for buy in Silver at Rs 61,300 levels, with the stop loss of 60,800 levels and for the target of 62,400 levels: Anuj Gupta – DVP- Commodities and Currencies Research, Angel Broking Ltd
COMEX gold trades little changed near $1911/oz after a 0.1% gain yesterday. Gold fell as low as $1892.7/oz in intraday trade yesterday but recovered to end little changed near $1908.9/oz. Gold may continue in the $1880-1930/oz unless there is more clarity on US stimulus but general bias may be on the upside on increasing challenges to global economy: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Domestic sentiments are relatively supported as India’s trade deficit declined to $2.7 billion in September from the previous month’s $6.8 billion as exports grew indicating a good economic recovery. Hence, if the selloff is not as deeper as yesterday in equity where the Nifty had fallen above 2.5%, then rupee may show some signs of relief and not depreciate drastically. Having said, 73.50 remains a crucial level to watch for the rupee which if broken, then increase in dollar demand could trigger rupee to break above 73.50 levels and the pair can move towards 73.80-74.20 levels due to panic buying. Therefore, it is advisable to strategize than speculate for making rational hedging decisions: Amit Pabari, managing director, CR Forex Advisors
Strong medium-term support for the Nifty lies at 11550-11600. As long as this holds, we continue to look for opportunities to buy into this uptrend. If we break 11550, we should be headed down to levels closer to 11350. On the upside, the resistance would be at 11950-12000: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
USD/INR yet again got supported around 73.25 on account of buying by nationalized banks. The Rupee continues to trade a tight 73.20-73.50 range. Forwards have been under pressure off late. The 1y forward yield has dropped to 4.10% from recent highs around 4.35%. The Central bank has been conspicuously absent from the paying side. Abundant Rupee liquidity and lower money market rates could continue to weigh on forwards. FPIs have invested close to USD 1.1bn in equities so far in October. And have pulled out about USD 100mn from debt in October so far: Abhishek Goenka, Founder and CEO, IFA Global
Five out of 30 Sensex stocks were trading in the negative territory. HCL Tech was the top Sensex loser post Q2 earnings. Asian Paints, Sun Pharma, Tech Mahindra and Nestle India were other losers.
Top BSE Sensex gainers were Tata Steel, Bharti Airtel, IndusInd Bank, ONGC, Bajaj Finance, Kotak Mahindra Bank in Friday’s session.
HCL Technologies’ Q2 net profit came at Rs 3,142 crore in July-September quarter, rising 7.4% sequentially. Revenue stood at Rs 18,594 crore.
Bharti Airtel share price was trading over half a per cent up at Rs 402, after the telecom giant announced an agreement under which Comfort Investments II will invest US$235 million in Nxtra Data Limited, a wholly owned subsidiary of Airtel engaged in the data centre business.
Check live prices: Bharti Airtel
BSE Sensex jumped over 350 points or 0.87 per cent to trade at 40,072.90, while the Nifty 50 regains 11,750 to rule at 11,768 on Friday.
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Taking cues from global peers, BSE Sensex and Nifty 50 fell up to 2.6 per cent in Thursday’s session. At close, investors had lost Rs 3.28 lakh crore in wealth today. S&P BSE Sensex ended 2.61 per cent lower at 39,728.41, while the Nifty 50 index settled at 11,680.35, down 291 points, or 2.43 per cent. The bloodbath on Dalal Street wiped off all the gains made in the last six sessions. Even the 10-day rally failed to push Nifty 50 above the January high (all-time high) of 12,431.
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BSE Sensex jumped over 250 pts to trade at 39,983, while the broader Nifty 50 reclaimed 11,700 level in pre-open today.
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HCL Technologies: IT giant HCL Tech is scheduled to announce its July-September quarter earnings later in the day today.Bharti Airtel: Bharti Airtel announced an agreement under which Comfort Investments II will invest US$235 million in Nxtra Data Limited.
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Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) net sold shares worth Rs 604.07 crore and Rs 808.29 crore on October 15, as per provisional data available on the NSE.
Given the sharp nature of the fall, we may see some minor technical pullbacks.. however, the possibility of the NIFTY testing the 50-DMA , which presently stands at 11430 cannot be ruled out. Also, the zone of 11430-11500 can act as a potential pattern support in form of a falling trend line which the NIFTY took out on its way up. This trend line began from 11800 and joined the subsequent lower tops. This trend line, which was a resistance earlier, is now expected to act as support: Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst, Gemstone Equity Research & Advisory Services
Domestic crude fell on Thursday, tracking weak overseas prices. Domestic crude could start flat to marginally lower and remain range bound this Friday, tracking overseas prices. Technically, MCX Crude Oil October recovered from its early losses and bounced from its multi support levels of 2880 indicating a positivity in the counter. Resistance is at 3020-3055 levels and Support is at 2950-2920 levels: Sriram Iyer, Senior Research Analyst at Reliance Securities
The Nifty after so many attempts has failed to go above the January high of 12431. A large bear candle at the top could result in more weakness if Nifty does not stop falling in the next 1-2 days. On fall, the Nifty could take support in the 11522-11605 band: Deepak Jasani, Head of Retail Research, HDFC Securities
The break of 11800 proved to be quite severe in intensity as the markets dropped 150 points from that level. Traders are advised to maintain caution and not jump into long or short trades immediately. The resistance on the upside is at 12000 and the support for the medium term is at 11500: Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments
Thursday’s fall engulfed the gains of the last six sessions and derailed the momentum as well. We believe 11,600 would be the next critical support in Nifty. Considering the scenario, we suggest maintaining short positions also and limiting trades largely to the index majors. Besides, participants should keep a close watch on global developments for cues: Ajit Mishra, VP – Research, Religare Broking Ltd
On Thursady, Nifty failed to follow a continuation pattern and that triggered extreme weakness in the market. Nifty is heading towards 10500 on the minimum side. On the higher side, 11780/11800 would be key hurldes and traders should look for selling short on the Nifty with a final stop loss at 11850: Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
Finance Minister Nirmala Sitharaman on Thursday said V-shaped pattern of recovery is being seen in several high-frequency indicators, driven by various measures taken by the government to revive economic growth, hit hard by the outbreak of COVID-19 pandemic.
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