D-Street Buzz: IT stocks trade mixed

D-Street Buzz: IT stocks trade mixed

a person with the hand on the face: D-Street Buzz: IT stocks trade mixed - Coforge, HCL Tech, Mphasis up 1-2%; Wipro trades flat ahead of earnings

© Nishant Kumar
D-Street Buzz: IT stocks trade mixed – Coforge, HCL Tech, Mphasis up 1-2%; Wipro trades flat ahead of earnings

The Indian stock market continues trading in the green with Sensex up 120.79 points or 0.3 percent at 40714.59, and the Nifty adding 36.30 points or 0.3 percent at 11967.30.

Among the sectors, the IT index added half a percent led by HCL Tech and Coforge which gained 2 percent each followed by Info Edge, Mphasis and Tech Mahindra.

Share price of Wipro was trading flat with the stock quoting at Rs 376.75, down Rs 0.80, or 0.21 percent. It has touched an intraday high of Rs 378.00 and an intraday low of Rs 373.

Wipro is expected to report around 3.5 percent dollar revenue growth QoQ in the quarter ended September 30, 2020. Large deal wins and easing of supply-side constraints may boost topline.

The constant currency revenue growth could be around 2 percent QoQ, while profit is expected to grow in the range of 4-9 percent backed by revenue and stable EBIT margin.

The Board of directors of Wipro will be considering a proposal of buyback of equity shares of the company at the meeting scheduled to be held on October 13, 2020.

“We expect constant revenue growth of 2 percent QoQ and cross-currency tailwind of around 150 bps. In USD terms, we expect revenue to grow by 3.5 percent QoQ. Growth is expected to be driven by large deal wins, easing of supply-side constraints, and recovery in consumer, technology, communication, and healthcare verticals,” said Sharekhan which sees 9 percent growth in consolidated profit.

S&P BSE IT also added half a percent with the top gainers being 63 Moons Tech, Birlasoft, L&T Technology, Newgen Software and Ramco Systems among others.

Infosys and Tata Consultancy Services are two of the most active stocks on NSE in terms of value with 50,45,707 shares and 17,58,706 shares being traded respectively.

Vikas Jain, Senior Research Analyst at Reliance Securities suggests booking profits in Coforge. The stock has been a strong outperformer post the recent announcements of buybacks in the sector with gains of 26 percent so far in the current expiry.

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