Buzz | Mindtree share price rises 5% after strong third quarter earnings
Shares of Mindtree Ltd were up over 5 percent in early trading on Tuesday after the company reported strong earnings for the third quarter of fiscal 2021. The company posted a 28.7 percent sequential growth in consolidated earnings to Rs. 326.5 crore for the quarter ending December 2020. Analysts surveyed by CNBC-TV18 had estimated a net profit of Rs 270.5 crore. Consolidated revenue increased 5.1 percent to Rs 2,023.7 crore from Rs 1,926 crore and dollar revenue increased 5 percent sequentially to $ 274.1 million during the quarter.
Goldman Sachs said Mindtree reported better-than-expected third-quarter revenue and margins, leading to an operating pace while noting that revenue growth was highest in the third quarter in more than a decade and margin was in a maximum of 11 years. The improvement in parameters such as offshoring and higher utilization led to this margin, he said. The brokerage reiterated a Buy rating on the stock with a price target of Rs 1,998 per share. It increased its EPS estimates for fiscal year 21-23 by 5% / 1% / 1% and is forecasting a margin of 17.5 percent during fiscal year 21-23.
Morgan Stanley kept the rating of equal weight and raised the price target to Rs 1,645 per share as it considers the company’s third-quarter revenue was largely in line, but the margin was significantly better. The company is confident of industry-leading growth with a margin of more than 20% going forward, while the profit from the margin could be used to drive growth, Morgan Stanley said.
Manish Hathiramani, Technical Analyst and Property Index Trader, Deen Dayal Investments
Although we have opened an upward gap, I would be wary of going long immediately. The Nifty has resistance around the 14,550-14,600 levels. If we can conquer that, we should be heading to 14,900. Until then, there is a possibility of falling to levels closer to 14,100 and then 14,000.
Market Watch: Shubham Agarwal, CEO and Head of Research, Quantsapp Advisory
> The first buy call is on Bajaj Auto – 3,600 strike call option can be bought for a target of Rs 118 with a stop loss of Rs 65.
> The second call option is on Piramal Enterprises – The 1,650 strike call option can be bought for a target of Rs 80 with a stop loss at Rs 40.
> Finally, a buy call on Godrej Consumer: this is a buy futures trade for a target of Rs 825 with a stop loss at Rs 750.
Opening Bell: Sensex Opens 350 Points Higher, Nifty Approaching 14,400; all sectors in the green
Indian indices opened higher on Tuesday, breaking two consecutive sessions of losses, following the gains of Asian pairs. Asian stocks rose as investors waited for the US Treasury candidate, Janet Yellen’s comments on fiscal stimulus and the future trajectory of the dollar. At 9:18 am, the Sensex was up 383 points to 48,948 while the Nifty was up 103 points to 14,384. The broader markets were also in line with benchmarks with the mid-cap and small-cap indices rising by about one percent each. All sectors witnessed massive purchases in the first transactions. Nifty Auto, Nifty Pharma and Nifty IT each climbed more than 1 percent, while the banking and end-of-career service indexes each rose 0.7 percent. In the Nifty50 index, Tata Motors, GAIL, ONGC, SBI and IndusInd Bank were the main winners, while UPL and Tata Steel were the only stocks in the red.
HDFC Bank gives short and medium term plan to RBI, hopes to eradicate technical flaws
HDFC Bank has delivered a short- and medium-long-term plan to the Reserve Bank of India (RBI), sources close to the lender reported. These plans are related to eradicating technical failures facing the lender, the sources said. This development came after RBI did not allow HDFC Bank to issue new credit cards due to repeated technological failures. The central bank is expected to allow card issuance after the bank complies with corrective measures. The technological strengthening plans will take 3 months. The bank will then await RBI’s assessment, the sources added.
Automotive Q3 Preview: Volume Recovery to Drive Earnings
Volume recovery for Indian automakers continued into the third quarter of fiscal 21. Strong momentum was observed in retail sales of tractors and passenger vehicles (PV), while the same for two-wheelers was slightly lower than last year. The December quarter witnessed a surge in commodity prices and experts suggest that the impact of commodity prices would be reflected in profit and loss from the third quarter of fiscal year 21 onwards. Commodity core price inflation is likely to have a gross impact of 350-400 bps over the next two to three quarters. However, the impact of inflation is considered to be offset by a number of measures taken by OEMs, including price increases, lower discounts, cost reduction and operating leverage. More here
Former RBI official says banks can access deposits in exchange for CRR, SLR rules, NBFC cannot access deposits, so they will not need to hold CRR, SLR
RBI is unlikely to say so #NBFCs to keep CRR and SLR without power to access deposits pic.twitter.com/3ziJL0sXhL
– CNBC-TV18 (@ CNBCTV18Live) January 19, 2021
Yes The bank board will meet on Friday to consider the fundraising plan
Yes Bank’s board will meet Friday to consider a proposal for increased fundraising through various means, according to the private sector lender. The bank had launched a follow-up public offering (FPO) of Rs 15,000 crore in July 2020 to shore up its reserves which have fallen below regulatory thresholds. However, he subscribed to 95 percent on the last day, for which he raised Rs 14,267 crore through his FPO. Yes Bank in a regulatory filing on Monday said that the board at its meeting, scheduled for January 22, 2021, to approve the third quarter results, will also discuss and consider fundraising by issuing shares, debentures, warrants. and any other. stock-linked securities, through permissible modes subject to necessary shareholders or regulatory approvals. More here
First, here is a quick update on what happened in the markets on Monday
Benchmark Indian stock indices Senex and Nifty closed lower on Monday dragged down by strong selling across the board. The Sensex closed 0.96 percent, or 470.40 points less, at 48,564.27, while Nifty closed at 14,281.30, 1.06 percent less or 152.40 points. The broader indices underperformed benchmarks, with the Nifty Midcap100 and Nifty Smallcap100 falling more than 2 percent each. All sector indices finished in the red with the Nifty Metal Index losing more than 4 percent, followed by Nifty Pharma, Nifty PSU Bank, Nifty Auto, and Nifty Realty falling more than 2 percent each.
Welcome to the CNBC-TV18 Market Live blog
Good morning readers! This is Pranati Deva from the market desk of CNBC-TV18. Welcome to our market blog, where we provide live news coverage of the latest events in the stock market, business and the economy. We’ll also get instant reactions and guests from our stellar lineup of TV guests and editors, researchers, and internal reporters. If you are an investor, we wish you a great trading day. Good luck!
