Tag: Best research analyst in India

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company

Telegram | Facebook | Twitter

Call: +91 9624421555 / +91 9624461555

TCS share price top Sensex loser; why TCS stock is falling despite 15% rise in net profit

IT stocks such as TCS, Infosys, HCL Technologies and Tech Mahindra were trading up to 3.5 per cent down on BSE on Tuesday. Tata Consultancy Services share price fell as much as 4.36 per cent to Rs 3,100.05 apiece and was the top BSE Sensex dragger on the back of profit-booking a day after it posted a 15 per cent on-year rise in net profit to Rs 9,246 crore in the January-March quarter. Research brokerage firms and analysts have mixed response to TCS Q4 results. Analysts at ICICI Securities have downgraded TCS stock to ‘hold’ from ‘add’ as they believe that industry growth is unlikely to witness a meaningful acceleration (vs pre-Covid) over the medium term as is expected by the street.

Nifty IT index was the top sectoral loser, down 3.34 per cent weighed down by losses in Coforge, which was down 7 per cent. Other IT stocks such as Mindtree, TCS, Tech Mahindra, Infosys, Wipro were down in the range of 1.5-4.4 per cent. Technology stocks had run up sharply in anticipation of strong results. “However, further performance required a strong earning beat combined with above expectation growth outlook,” Investment advisor Sandip Sabharwal told Financial Express Online. Sabharwal added that the outlook seems decent but valuations are stretched. “At such a price, timewise correction is imminent,” he added.

TCS’ board of directors have also recommended a final dividend of Rs 15 per share. In the previous three quarters, the company has given interim dividends of Rs 5 per share, Rs 12 per share, and Rs 6 per share. The total dividend given by TCS in FY21 now stands at Rs 38 per share. “The main reason which seems to be ailing the IT sector as of now is the weak USDINR pair as it settled 32 paise lower on Monday, which has a potential risk of wiping out the earnings of from foreign revenues of such IT firms,” Vishal Balabhadruni, Senior Research Analyst at CapitalVia Global Research, told Financial Express.

What should you do with TCS stock now?
Analysts believe that today’s fall in IT shares offers a good opportunity for the investors to make a re-entry. IT stocks are witnessing profit booking post-TCS results, with profits marginally below analysts expectations. “Overall, with IT stocks till recently, hitting record highs, a healthy correction is always welcome, as it at the same time, offers opportunities for re-entry,” Aamar Deo Singh, Head Advisory at Angel Broking, told Financial Express Online. So far in the trade, a total of 1.09 lakh shares have traded on BSE, while 38.56 lakh shares have exchanged hands on NSE, so far.

Those at Kotak Institutional Equities have maintained a ‘reduce’ rating to the TCS stock due to its expensive valuations. ” At 27.4X FY2023E, the upside is limited,” it added. While Macquarie has an ‘outperform’ rating to TCS stock, with a target price of Rs 3,640, a 17.4 per cent rally from today’s low.

Eqwires Research Analyst

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company

Telegram | Facebook | Twitter

Call: +91 9624421555 / +91 9624461555

Zaid crops sowing up 16.49 pc so far this year: Govt

The total area sown to zaid (summer) crops has increased by 16.49 per cent to 67.87 lakh hectare so far this year and maximum coverage has been under paddy, according to Agriculture Ministry data. Zaid, also called grishmkal crops, are sown between February-June, the intervening period between Rabi (winter) harvest and Kharif (monsoon) sowing.

“Zaid crops are grown in a 30-90 days window period between rabi harvest and kharif sowing. The government is promoting zaid crops to help farmers earn additional income,” Agriculture Commissioner S K Malhotra told PTI. The total area sown with zaid crops has increased to 67.87 lakh hectare so far this year, from 58.26 lakh hectare in the year-ago period, as per the ministry’s latest data.

The trend of summer sowing progress is “very good” as on date. There is no impact of COVID-19 pandemic situation on progress of area coverage under summer crops in the country, the ministry said. Out of the total area planted so far, maximum area has been covered under paddy at 38.80 lakh hectare so far this year, as against 36.05 lakh hectare a year ago.

Coverage of pulses has increased to 8.68 lakh hectare from 5.72 lakh hectare, coarse cereals to 10.86 lakh hectare from 8.54 lakh hectare, while that of oilseeds to 9.53 lakh hectare from 7.96 lakh hectare in the said period, the ministry data showed. Agriculture crops are grown in three seasons — rabi, kharif and zaid season.

Eqwires Research Analyst

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company

Telegram | Facebook | Twitter

Call: +91 9624421555 / +91 9624461555

Zerodha’s Nithin Kamath not looking to raise funds even as unicorns mushroom; wants this instead

India’s largest retail broker Zerodha will not join the likes of Cred, Groww and other promising startups who recently raised funds from investors. Zerodha’s founder Nithin Kamath took to Twitter to explain why his company is not looking to rope in investors even though funds have been lining up to invest. “Right now, is probably the stupidest time for fintech firms like Zerodha to be raising money. It is quite crazy the number of folks reaching out & the different deals,” Nithin Kamath said.

Zero debt, no marketing spends

Zerodha currently has over 32 lakh customers, beating traditional stockbrokers such as ICICI Securities, HDFC Securities and even new age brokerage firms such as Angel Broking. Kamath said that Zerodha does not need the money and will not raise funds “just because someone is ready to give it to you”. “We are profitable, have zero debt. And we don’t spend on marketing and advertising which is probably the single biggest reason for folks raising money,” he added.

Right now, is probably the stupidest time for fintech firms like @zerodhaonline to be raising money. It is quite crazy the number of folks reaching out & the different deals. We might regret it in the future, but we are not raising & here are the counterintuitive reasons why. 1/7
— Nithin Kamath (@Nithin0dha) April 7, 2021

Although he conceded that Zerodha might regret not raising funds in the future but remained adamant about not doing so. Nithin Kamath added that he does not want Zerodha to “grow just for sake of growth with random businesses”, but instead wants to build things around the company’s core competency.

Hard to continuously grow

Zerodha is the leading player in India’s stock brokerage industry by the number of active clients. Nithin Kamath, who is also the CEO of Zerodha, said that the business he runs is directly linked to the fortunes of the stock market. “The hotness of our industry can disappear overnight with a 20% fall in the markets,” he warned, adding that taking investor obligations to continuously grow would be hard in such an industry.

The discount brokerage has recently introduced steps that help customers from making trades that could result in significant losses using its ‘Nudge’ feature. Nithin Kamath said that this reduces their trading volumes but his company is focusing on getting the “right product for the customer”. “…all of these theses may be wrong. But the freedom of not being obligated to an investor is much more valuable than the biggest cheque,” he added. Zerodha has nearly 25% retail volume share in India and has one of the highest daily trades globally, according to a recent Bernstein report. Zerodha had self-assessed its value at $1 billion in 2020 when it went for an Espo buy-back.

Eqwires Research Analyst

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company

Telegram | Facebook | Twitter

Call: +91 9624421555 / +91 9624461555

Reserve Bank sets up G-SAP for orderly functioning of G-Sec market

Reserve Bank of India (RBI) on Wednesday said it is putting in place a secondary market government securities acquisition programme or G-SAP 1.0 for this financial year to enable an orderly evolution of the yield curve.

According to the central bank, the endeavour through the programme will be to ensure congenial financial conditions for the recovery to gain traction.

Under the programme, which will be for the current financial year, RBI “will commit upfront to a specific amount of open market purchases of government securities with a view to enabling a stable and orderly evolution of the yield curve amidst comfortable liquidity conditions,” Governor Shaktikanta Das said while announcing the monetary policy.

For the first quarter of 2021-22, RBI will conduct a G-SAP of Rs one lakh crore and the first purchase of government securities for an aggregate amount of Rs 25,000 crore will be conducted on April 15, Das said.

“The positive externalities of G-SAP 1.0 operations need to be seen in the context of those segments of the financial markets that rely on the G-Sec (Government Securities) yield curve as a pricing benchmark,” he noted. He also said that extension of Held-to-Maturity (HTM) dispensation opens up space for investments of more than Rs 4 lakh crore.

According to him, RBI will continue to deploy its regular operations under the LAF, longer-term repo/ reverse repo auctions, forex operations and open market operations, including special OMOs, to ensure liquidity conditions evolve in consonance with the stance of monetary policy and financial conditions are supportive for all stakeholders. LAF is Liquidity Adjustment Facility while OMO refers to Open Market Operations.

The central bank also announced that it will conduct 14-day Variable Rate Reverse Repo (VRRR) auctions of longer maturity as indicated in the Revised Liquidity Management Framework announced on February 6, 2020.

The amount and tenor of these auctions will be decided based on the evolving liquidity and financial conditions, RBI said.

“This is a part of RBI’s liquidity management operations and should not be read as liquidity tightening. In fact, by paying a higher rate of interest on liquidity absorptions through the VRRR auctions, RBI is indirectly expanding liquidity,” Das emphasised. While laying out the liquidity management strategy for 2021-22, Das said RBI’s endeavour is to ensure orderly evolution of the yield curve, governed by fundamentals as distinct from any specific level thereof.

“Our objective is to eschew volatility in the G-Sec market in view of its central role in the pricing of other financial market instruments across the term structure and issuers, both in the public and private sectors,” he said. This is a necessary prerequisite for the nascent and hesitant recovery to firm up and become durable. Das also urged market participants to pay heed to RBI’s actions, communication and signals in a balanced manner.

“Together, we can overcome the challenges and lay the foundations for a durable recovery beyond the pandemic. Let us prepare for our tryst with our potential firmly,” he added.

Besides, the central bank has extended on-tap Targeted Long Term Repo Operations (TLTRO) by six months till September 30. The scheme was announced in October last year and was available till March 31, 2021.

To ensure continued flow of credit to the real economy, RBI has also extended fresh support of Rs 50,000 crore to All India Financial Institutions (AIFIs) for new lending in the current financial year.

Accordingly, Rs 25,000 crore will be provided to NABARD; Rs 10,000 crore to National Housing Bank (NHB) and Rs 15,000 crore to Small Industries Development Bank of India (SIDBI). Further, the timeline for banks to on-lend through non-banking finance companies has been extended by six months to September 30.

Eqwires Research Analyst

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company

Telegram | Facebook | Twitter

Call: +91 9624421555 / +91 9624461555