Yesterday Infosys declared its results, which surprised all its critics and market pundits by posting stellar earnings and revising its growth guidance upward, when it was expected to be revised sharply downwards.During the quarter they bagged 8 major clients and 53 new clients with a strong deal pipeline of 89, which will extend into the next year. Instead of revising their growth guidance downwards from 5% to 3.5%, they have actually upped it to 5.5%.
This surprised the markets because almost all the brokerages including foreign ones had a sell call on Infosys and because of the strong results the scrip rose by a whopping Rs.382 to close at Rs.2712, which is its biggest rise in a single day since 4 years.
This took the entire IT basket of TCS, HCL Tech and Wipro up.Though experts have been underweight on IT, I personally have been buying IT stocks, especially HCL Tech and TCS. Whenever there is global slowdown, good IT stocks always gain as technology spend helps US & European companies cut costs dramatically and Indian IT majors are a preferred choice in these geographies.
Indusind Bank also was one of the first to come out with it's results. Indusind's net profit was expected to grow by 26% but again it positively surprised with a PAT growth of 30%.
Midcap private banks like Indusind and Yes Bank still have a lot of upside still left. Despite a run up in their stock prices they still remain good buys even at current levels or buy on dips.
Nifty however moved in a narrow range betweem 6,000 and 5,951, where it closed. This means that money is being churned. Those who overbought at high prices in 2012 and got stuck for a long time in long positions are getting out and booking profits.
Nifty and Sensex should remain sideways for the next two weeks or so until 29th January when RBI is set to review interest rates. A 25 basis point cut in repo rates is already factored in. Anything more could take the market up. Anything less could see a 100 pt correction in Nifty, which will provide a great buying oppurtunity to those who missed out or those who are partly invested and are still holding cash.
This surprised the markets because almost all the brokerages including foreign ones had a sell call on Infosys and because of the strong results the scrip rose by a whopping Rs.382 to close at Rs.2712, which is its biggest rise in a single day since 4 years.
This took the entire IT basket of TCS, HCL Tech and Wipro up.Though experts have been underweight on IT, I personally have been buying IT stocks, especially HCL Tech and TCS. Whenever there is global slowdown, good IT stocks always gain as technology spend helps US & European companies cut costs dramatically and Indian IT majors are a preferred choice in these geographies.
Indusind Bank also was one of the first to come out with it's results. Indusind's net profit was expected to grow by 26% but again it positively surprised with a PAT growth of 30%.
Midcap private banks like Indusind and Yes Bank still have a lot of upside still left. Despite a run up in their stock prices they still remain good buys even at current levels or buy on dips.
Nifty however moved in a narrow range betweem 6,000 and 5,951, where it closed. This means that money is being churned. Those who overbought at high prices in 2012 and got stuck for a long time in long positions are getting out and booking profits.
Nifty and Sensex should remain sideways for the next two weeks or so until 29th January when RBI is set to review interest rates. A 25 basis point cut in repo rates is already factored in. Anything more could take the market up. Anything less could see a 100 pt correction in Nifty, which will provide a great buying oppurtunity to those who missed out or those who are partly invested and are still holding cash.
No comments:
Post a Comment