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Metal shares rose for the fifth session as China's factory activity grew in December., Nifty Metal index peaked at 11,532.10, led by Hindustan Copper's gains., Jefferies picked Tata Steel, JSW Steel, and Jindal Stainless as top sector bets

* Metal shares rose for the fifth session as China's factory activity grew in December.
* Nifty Metal index peaked at 11,532.10, led by Hindustan Copper's gains.
* Jefferies picked Tata Steel, JSW Steel, and Jindal Stainless as top sector bets

Metal shares rose for a fifth session, with the Nifty Metal index up nearly 1% as China’s factory activity rebounded and a weaker dollar boosted demand. Jefferies remains positive on the sector, naming Tata Steel, JSW Steel, and Jindal Stainless as top picks.

shorts/business/metal-shares-extend-gains-up-6-in-5-day-run-jefferies-sees-26-potential-upside-in-tata-steel

* Metal shares rose for the fifth session as China's factory activity grew in December.
* Nifty Metal index peaked at 11,532.10, led by Hindustan Copper's gains.
* Jefferies picked Tata Steel, JSW Steel, and Jindal Stainless as top sector bets

Metal shares extended their rally for a fifth straight session on Monday, with the sectoral index gaining more than 6 percent over the past five trading sessions.

Metal shares have seen continued rise as the China’s factory activity unexpectedly returned to expansion in December after eight straight months of contraction. Addtionally, a weaker dollar supported the commodity. The dollar index registered a 9.4 percent decline in 2025 — its biggest fall in eight years. A weaker dollar makes commodities priced in the US currency cheaper for buyers using other currencies, supporting demand and prices of metals.

The Nifty Metal index rose nearly 1 percent during the session to touch an intraday high of 11,532.10.

<a href="https://www.moneycontrol.com/india/stockpricequote/metals-non-ferrous/hindustancopper/HC07">Hindustan Copper</a> led the gains, rising about 3 percent to Rs 557.80 a share. <a href="https://www.moneycontrol.com/india/stockpricequote/steel-large/steelauthorityindia/SAI">Steel Authority of India</a> advanced 2 percent, while APL Apollo Tubes gained 1.87 percent.

Tata Steel, Jindal Stainless, Hindalco Industries and JSW Steel were also among the gainers, rising up to 2 percent.

Brokerage firm Jefferies said it has a positive view on the metals sector and has picked Tata Steel Ltd, JSW Steel Ltd and Jindal Stainless Ltd as its top bets.

Jefferies has set a price target of Rs 230 for Tata Steel, implying a potential upside of 26 percent from current levels. It has a target of Rs 1,400 for JSW Steel, indicating an upside of 18 percent and Rs 1,020 for Jindal Stainless, implying a 20 percent upside, according to a CNBC-TV18 report.

The brokerage has also raised its earnings estimates for Hindustan Zinc and Hindalco Industries by 4 to 7 percent to factor in higher silver and aluminium prices, the report said.

<em><strong>Disclaimer:</strong> The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.</em>

A financial journalist with over 10 years of experience, specialising in tracking stock market movements and fundamental developments that impact investors and the broader economy. A keen observer of global financial markets, I regularly engage with leading market voices to write stories. At Moneycontrol, I focus on decoding market trends, policy shifts and economic changes, driven by a constant passion to learn, analyse, and share knowledge with my readers.

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Metal shares extend gains, up 6% in 5-day run; Jefferies sees 26% potential upside in Tata Steel

Metal shares extended their rally for a fifth straight session on Monday, with the sectoral index gaining more than 6 percent over the past five trading sessions.

Metal shares have seen continued rise as the China’s factory activity unexpectedly returned to expansion in December after eight straight months of contraction. Addtionally, a weaker dollar supported the commodity. The dollar index registered a 9.4 percent decline in 2025 — its biggest fall in eight years. A weaker dollar makes commodities priced in the US currency cheaper for buyers using other currencies, supporting demand and prices of metals.

The Nifty Metal index rose nearly 1 percent during the session to touch an intraday high of 11,532.10.

Hindustan Copper led the gains, rising about 3 percent to Rs 557.80 a share. Steel Authority of India advanced 2 percent, while APL Apollo Tubes gained 1.87 percent.

Tata Steel, Jindal Stainless, Hindalco Industries and JSW Steel were also among the gainers, rising up to 2 percent.

Brokerage firm Jefferies said it has a positive view on the metals sector and has picked Tata Steel Ltd, JSW Steel Ltd and Jindal Stainless Ltd as its top bets.

Jefferies has set a price target of Rs 230 for Tata Steel, implying a potential upside of 26 percent from current levels. It has a target of Rs 1,400 for JSW Steel, indicating an upside of 18 percent and Rs 1,020 for Jindal Stainless, implying a 20 percent upside, according to a CNBC-TV18 report.

The brokerage has also raised its earnings estimates for Hindustan Zinc and Hindalco Industries by 4 to 7 percent to factor in higher silver and aluminium prices, the report said.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Cupid shares fell 36 percent in two days after a 550 percent rally in 2025, Stock placed under ASM Stage 1, requiring 100 percent margin to curb volatility, Analysts advise caution; consolidation needed before considering new positions

* Cupid shares fell 36 percent in two days after a 550 percent rally in 2025
* Stock placed under ASM Stage 1, requiring 100 percent margin to curb volatility
* Analysts advise caution; consolidation needed before considering new positions

Cupid shares fell 20% for a second day, dropping 36% in two sessions after a 550% rally in 2025. The stock was placed under ASM Stage 1 due to volatility. Analysts advise caution, citing profit booking and the need for consolidation.

shorts/business/cupid-shares-fall-20-for-2nd-straight-session-after-550-jump-in-2025-here-s-what-analysts-say

* Cupid shares fell 36 percent in two days after a 550 percent rally in 2025
* Stock placed under ASM Stage 1, requiring 100 percent margin to curb volatility
* Analysts advise caution; consolidation needed before considering new positions

The shares of <a href="https://www.moneycontrol.com/india/stockpricequote/miscellaneous/cupid/CR02">Cupid</a> dropped 20 percent for the second consecutive session on January 2, after seeing a sharp rally last year. Analysts have highlighted what lies ahead for the small-cap stock.

The shares of the condom-maker dropped to a one-month low of Rs 337.10 apiece on Monday, before recovering some losses. The stock has fallen around 36 percent in just two sessions, after rallying 550 percent in 2025.

The shares have extended losses for the second consecutive session after they were placed under long-term Additional Surveillance Measure (ASM) Stage 1 framework.  The framework involves 100 percent margin requirements on T+3 day to curb volatility in certain stocks.
<h3><strong>What does Cupid do?</strong></h3>
Cupid manufactures and supplies male and female condoms, water-based lubricant jelly and IVD kits. The company has a current capacity of over 480 million pieces for male condoms, 52 million pieces of the female condoms and 210 million sachets of lubricant jelly per annum.

The company's manufacturing facility is located at Sinnar near Nashik, about 200 km east of Mumbai. It claims to be the first company in the world to obtain pre-qualification status from WHO/UNFPA for supply of both male and female condoms.
<h3><strong>What lies ahead?</strong></h3>
Cupid has been among the standout performers in the small-cap universe through 2025, with the stock rallying several hundred percent from its 52-week low earlier in the year to hit multiple record highs, said Kalp Jain, Research Analyst at INVasset PMS.

He attributed the recent fall in the share price to profit booking at elevated levels. "Given the steep rise year-to-date and the stock’s volatility, upcoming catalysts such as quarterly performance, execution on the Saudi expansion and broader FMCG traction are likely to influence near-term price action. While the long-term expansion narrative remains intact, intermittent swings may persist around key developments and trading volumes," he said.

Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, advised investors to avoid fresh positions for now and allow the stock to stabilize. "A healthy consolidation between the ₹370–₹400 range would be needed before considering any bullish stance. On the upside, ₹445 remains a strong resistance, while a breakdown below ₹370 may invite further downside," he said.

The extreme volatility of Cupid shares illustrates the volatile nature of market sentiments in high momentum small-caps, said Siddharth Maurya, Founder &amp; Managing Director, Vibhavangal Anukulakara. The recent upside move was based on keen interest in the expansion plans as well as the acceleration in financial results, but corrections are expected in profit-booking, he added.

Follow all <a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-indicates-a-strong-start-us-asian-markets-gain-liveblog-13755960.html">LIVE updates</a> from the stock markets here.

<em>Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.</em>

Cupid shares fall 20% for 2nd straight session after 550% jump in 2025: Here's what analysts say

The shares of Cupid dropped 20 percent for the second consecutive session on January 2, after seeing a sharp rally last year. Analysts have highlighted what lies ahead for the small-cap stock.

The shares of the condom-maker dropped to a one-month low of Rs 337.10 apiece on Monday, before recovering some losses. The stock has fallen around 36 percent in just two sessions, after rallying 550 percent in 2025.

The shares have extended losses for the second consecutive session after they were placed under long-term Additional Surveillance Measure (ASM) Stage 1 framework.  The framework involves 100 percent margin requirements on T+3 day to curb volatility in certain stocks.
What does Cupid do?
Cupid manufactures and supplies male and female condoms, water-based lubricant jelly and IVD kits. The company has a current capacity of over 480 million pieces for male condoms, 52 million pieces of the female condoms and 210 million sachets of lubricant jelly per annum.

The company's manufacturing facility is located at Sinnar near Nashik, about 200 km east of Mumbai. It claims to be the first company in the world to obtain pre-qualification status from WHO/UNFPA for supply of both male and female condoms.
What lies ahead?
Cupid has been among the standout performers in the small-cap universe through 2025, with the stock rallying several hundred percent from its 52-week low earlier in the year to hit multiple record highs, said Kalp Jain, Research Analyst at INVasset PMS.

He attributed the recent fall in the share price to profit booking at elevated levels. &quot;Given the steep rise year-to-date and the stock’s volatility, upcoming catalysts such as quarterly performance, execution on the Saudi expansion and broader FMCG traction are likely to influence near-term price action. While the long-term expansion narrative remains intact, intermittent swings may persist around key developments and trading volumes,&quot; he said.

Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, advised investors to avoid fresh positions for now and allow the stock to stabilize. &quot;A healthy consolidation between the ₹370–₹400 range would be needed before considering any bullish stance. On the upside, ₹445 remains a strong resistance, while a breakdown below ₹370 may invite further downside,&quot; he said.

The extreme volatility of Cupid shares illustrates the volatile nature of market sentiments in high momentum small-caps, said Siddharth Maurya, Founder &amp;amp; Managing Director, Vibhavangal Anukulakara. The recent upside move was based on keen interest in the expansion plans as well as the acceleration in financial results, but corrections are expected in profit-booking, he added.

Follow all LIVE updates from the stock markets here.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

HDFC Bank shares fell over 2 percent after Q3 FY26 business update release, Union Bank of India shares hit 52-week high, gaining more than 4 percent, Axis, ICICI, SBI, and AU Small Finance Bank shares rose over 1 percent each

* HDFC Bank shares fell over 2 percent after Q3 FY26 business update release
* Union Bank of India shares hit 52-week high, gaining more than 4 percent
* Axis, ICICI, SBI, and AU Small Finance Bank shares rose over 1 percent each

HDFC Bank shares fell over 2% after Q3 FY26 updates, despite a 9% YoY rise in advances and 12.2% growth in deposits. Union Bank of India hit a 52-week high with over 4% gain. Other major banks saw mixed movements on January 5.

shorts/business/hdfc-bank-shares-fall-2-after-q3-business-update-union-bank-jumps-4-to-fresh-52-week-high

* HDFC Bank shares fell over 2 percent after Q3 FY26 business update release
* Union Bank of India shares hit 52-week high, gaining more than 4 percent
* Axis, ICICI, SBI, and AU Small Finance Bank shares rose over 1 percent each

The shares of HDFC Bank dropped more than 2 percent on January 5 after the company released provisional updates for the third quarter of the ongoing financial year 2026. Union Bank of India and other lender stocks meanwhile gained sharply.

HDFC Bank shares fell to Rs 981.05 apiece, emerging as the top loser on the benchmark indices Sensex and Nifty. Union Bank of India shares meanwhile gained more than 4 percent to a fresh 52-week high of Rs 162.99 apiece.

The Nifty Bank index was up marginally at 60,246.55, as seen at 12.30 pm.
<h3><strong>HDFC Bank Q3 business update:</strong></h3>
<a href="https://www.moneycontrol.com/india/stockpricequote/banks-private-sector/hdfcbank/HDF01">HDFC Bank</a> on January 5 reported a 9 percent YoY rise in average advances under management (advances grossing up for inter-bank participation certificates, bills rediscounted and securitisation/assignment) to Rs 28.64 lakh crore in Q3 FY26, from Rs 26.28 lakh crore in Q3 FY25.

The lender's period end advances under management meanwhile rose 9.8 percent YoY to Rs 29.46 lakh crore at the end of the quarter, while gross advances jumped 11.9 percent YoY to Rs 25.43 crore.

HDFC Bank’s average deposits rose 12.2 percent to Rs 27.52 lakh crore, while CASA deposits gained 9.9 percent YoY to Rs 8.18 lakh crore during the quarter.
<h3><strong>Union Bank of India Q3 business update:</strong></h3>
<a href="https://www.moneycontrol.com/india/stockpricequote/banks-public-sector/unionbankindia/UBI01">Union Bank of India </a>released its provisional Q3 business updates in the post market hours of January 2. The company’s total gross advances grew 7.13 percent YoY to Rs 10.17 lakh crore, while deposits rose 3.36 percent YoY to Rs 12.23 lakh crore.

The lender’s domestic CASA Deposits grew 5 percent YoY to Rs 4.15 lakh crore.
<h3><strong>Other bank stocks:</strong></h3>
Federal Bank shares fell 2 percent, while IDFC First Bank and <a href="https://www.moneycontrol.com/india/stockpricequote/banks-private-sector/kotakmahindrabank/KMB">Kotak Mahindra Bank</a> shares were trading in the red with marginal losses.

<a href="https://www.moneycontrol.com/india/stockpricequote/banks-private-sector/axisbank/AB16">Axis Bank</a>, ICICI Bank, State Bank of India (SBI) and AU Small Finance Bank shares rose more than 1 percent each, while Bank of Baroda, Yes Bank, Punjab National Bank (PNB), <a href="https://www.moneycontrol.com/india/stockpricequote/banks-private-sector/indusindbank/IIB">IndusInd Bank</a> and Canara Bank shares gained nearly 1 percent each.

Follow all <a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-indicates-a-strong-start-us-asian-markets-gain-liveblog-13755960.html">LIVE updates</a> from the stock markets here.

<em>Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.</em>

HDFC Bank shares fall 2% after Q3 business update; Union Bank jumps 4% to fresh 52-week high

The shares of HDFC Bank dropped more than 2 percent on January 5 after the company released provisional updates for the third quarter of the ongoing financial year 2026. Union Bank of India and other lender stocks meanwhile gained sharply.

HDFC Bank shares fell to Rs 981.05 apiece, emerging as the top loser on the benchmark indices Sensex and Nifty. Union Bank of India shares meanwhile gained more than 4 percent to a fresh 52-week high of Rs 162.99 apiece.

The Nifty Bank index was up marginally at 60,246.55, as seen at 12.30 pm.
HDFC Bank Q3 business update:
HDFC Bank on January 5 reported a 9 percent YoY rise in average advances under management (advances grossing up for inter-bank participation certificates, bills rediscounted and securitisation/assignment) to Rs 28.64 lakh crore in Q3 FY26, from Rs 26.28 lakh crore in Q3 FY25.

The lender's period end advances under management meanwhile rose 9.8 percent YoY to Rs 29.46 lakh crore at the end of the quarter, while gross advances jumped 11.9 percent YoY to Rs 25.43 crore.

HDFC Bank’s average deposits rose 12.2 percent to Rs 27.52 lakh crore, while CASA deposits gained 9.9 percent YoY to Rs 8.18 lakh crore during the quarter.
Union Bank of India Q3 business update:
Union Bank of India released its provisional Q3 business updates in the post market hours of January 2. The company’s total gross advances grew 7.13 percent YoY to Rs 10.17 lakh crore, while deposits rose 3.36 percent YoY to Rs 12.23 lakh crore.

The lender’s domestic CASA Deposits grew 5 percent YoY to Rs 4.15 lakh crore.
Other bank stocks:
Federal Bank shares fell 2 percent, while IDFC First Bank and Kotak Mahindra Bank shares were trading in the red with marginal losses.

Axis Bank, ICICI Bank, State Bank of India (SBI) and AU Small Finance Bank shares rose more than 1 percent each, while Bank of Baroda, Yes Bank, Punjab National Bank (PNB), IndusInd Bank and Canara Bank shares gained nearly 1 percent each.

Follow all LIVE updates from the stock markets here.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Premier and Waaree Energies shares dropped up to 9% after F&O inclusion., Bernstein kept 'Underperform' ratings and downside targets for both stocks., Premier Energies fell 12% in a month, Waaree Energies down 13% since listing.

* Premier and Waaree Energies shares dropped up to 9% after F&O inclusion.
* Bernstein kept 'Underperform' ratings and downside targets for both stocks.
* Premier Energies fell 12% in a month, Waaree Energies down 13% since listing.

Premier Energies and Waaree Energies shares fell up to 9% since their inclusion in the F&O segment on Dec 31. Bernstein maintained an 'Underperform' rating on both, citing further downside potential. Both stocks have seen significant declines since listing.

shorts/business/premier-waaree-energies-shares-fall-up-to-7-down-up-to-9-since-f-o-inclusion

* Premier and Waaree Energies shares dropped up to 9% after F&O inclusion.
* Bernstein kept 'Underperform' ratings and downside targets for both stocks.
* Premier Energies fell 12% in a month, Waaree Energies down 13% since listing.

The shares of Premier Energies and Waaree Energies dropped in trade on January 5. The stocks have fallen up to 9 percent since their inclusion into the futures and options (F&amp;O) segment.

<a href="https://www.moneycontrol.com/india/stockpricequote/electric-equipment/premierenergies/PEL06">Premier Energies</a> shares fell 7.5 percent to trade at Rs 782.40 apiece on Monday, while <a href="https://www.moneycontrol.com/india/stockpricequote/electric-equipment/waareeenergies/WEL01">Waaree Energies</a> shares fell nearly 5 percent to Rs 2,723 apiece. The two stocks have fallen 8 percent and 9 percent respectively since December 31, the day they were included in the F&amp;O segment.
<h3><strong>F&amp;O inclusion:</strong></h3>
Earlier last month, NSE announced the <a href="https://www.moneycontrol.com/news/business/markets/bajaj-holdings-swiggy-among-4-to-join-f-o-list-from-december-31st-13733005.html">introduction of futures and options (F&amp;O) contracts</a> on four individual securities, effective December 31, 2025.

The new additions to the derivatives segment are Bajaj Holdings and Investment, Premier Energies, <a href="https://www.moneycontrol.com/india/stockpricequote/online-services/swiggy/SL24">Swiggy</a>, and Waaree Energies. Inclusion of stocks in F&amp;O is believed to boost their liquidity, visibility, and trading opportunities, allowing investors to hedge portfolios.

HFCL, NCC, Cyient and Titagarh Rail Systems were meanwhile removed from the segment.
<h3><strong>Buy, sell or hold?</strong></h3>
Bernstein on Monday maintained its 'Underperform' rating on both Premier and Waaree Energies. The international brokerage has a target price of Rs 718 apiece for Premier Energies, implying a downside potential of more than 15 percent from the stock’s previous closing price.

For Waaree Energies, Bernstein kept a target price of Rs 2,109 apiece, implying a downside potential of more than 26 percent from the stock’s previous closing price. The stock is down around 13 percent since listing.

Premier Energies shares have fallen 12 percent in the past one month, and over 23 percent in the past six months. The stock has fallen more than 27 percent since listing.

Waaree Energies shares fell over 7 percent in the past five days, and over 6 percent in the past six months.

Follow all <a href="https://www.moneycontrol.com/news/business/markets/stock-market-live-updates-gift-nifty-indicates-a-strong-start-us-asian-markets-gain-liveblog-13755960.html">LIVE updates</a> from the stock markets here.

<em>Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.</em>

Premier, Waaree Energies shares fall up to 7%, down up to 9% since F&O inclusion

Premier, Waaree Energies shares tumble up to 7%, down up to 9% since F&O inclusion

The shares of Premier Energies and Waaree Energies dropped in trade on January 5. The stocks have fallen up to 9 percent since their inclusion into the futures and options (F&amp;amp;O) segment.

Premier Energies shares fell 7.5 percent to trade at Rs 782.40 apiece on Monday, while Waaree Energies shares fell nearly 5 percent to Rs 2,723 apiece. The two stocks have fallen 8 percent and 9 percent respectively since December 31, the day they were included in the F&amp;amp;O segment.
F&amp;amp;O inclusion:
Earlier last month, NSE announced the introduction of futures and options (F&amp;amp;O) contracts on four individual securities, effective December 31, 2025.

The new additions to the derivatives segment are Bajaj Holdings and Investment, Premier Energies, Swiggy, and Waaree Energies. Inclusion of stocks in F&amp;amp;O is believed to boost their liquidity, visibility, and trading opportunities, allowing investors to hedge portfolios.

HFCL, NCC, Cyient and Titagarh Rail Systems were meanwhile removed from the segment.
Buy, sell or hold?
Bernstein on Monday maintained its 'Underperform' rating on both Premier and Waaree Energies. The international brokerage has a target price of Rs 718 apiece for Premier Energies, implying a downside potential of more than 15 percent from the stock’s previous closing price.

For Waaree Energies, Bernstein kept a target price of Rs 2,109 apiece, implying a downside potential of more than 26 percent from the stock’s previous closing price. The stock is down around 13 percent since listing.

Premier Energies shares have fallen 12 percent in the past one month, and over 23 percent in the past six months. The stock has fallen more than 27 percent since listing.

Waaree Energies shares fell over 7 percent in the past five days, and over 6 percent in the past six months.

Follow all LIVE updates from the stock markets here.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.

Premier, Waaree Energies shares fall up to 7%, down up to 9% since F&amp;O inclusion

Indian IT stocks dropped after CLSA's cautious note before Q3 FY26 earnings., CLSA downgraded HCLTech and Tech Mahindra, citing limited near-term upside, Infosys, HCLTech, and Wipro shares dropped over 2 percent each

* Indian IT stocks dropped after CLSA's cautious note before Q3 FY26 earnings.
* CLSA downgraded HCLTech and Tech Mahindra, citing limited near-term upside
* Infosys, HCLTech, and Wipro shares dropped over 2 percent each

Indian IT stocks fell on January 5 after CLSA advised reducing positions due to expected weak Q3 FY26 earnings. Nifty IT index dropped over 1.6%. CLSA downgraded HCLTech and Tech Mahindra, but still favors Persistent Systems, Coforge, Infosys, and Tech Mahindra.

shorts/business/infosys-hcltech-shares-fall-2-as-clsa-says-trim-your-positions-expects-soft-q3-earnings-for-it-sector

* Indian IT stocks dropped after CLSA's cautious note before Q3 FY26 earnings.
* CLSA downgraded HCLTech and Tech Mahindra, citing limited near-term upside
* Infosys, HCLTech, and Wipro shares dropped over 2 percent each

The shares of Indian IT companies dropped in trade on January 5 after CLSA issued a cautious note, advising investors to reduce their positions as the upcoming Q3 FY26 earnings are expected to be soft.

The sharp rise in the share prices pushed the <a href="https://www.moneycontrol.com/indian-indices/nifty-it-19.html">Nifty IT index</a> down more than 1.6 percent to 37,698.95, as seen at 11 am on Monday.
<h3><strong>Here's what CLSA said:</strong></h3>
CLSA in its latest note said that the Nifty IT index has recently outperformed the broader Nifty index, pushing the valuations closer to fair levels and limiting near-term upside, CNBC-TV18 reported.

The international brokerage has downgraded <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/hcltechnologies/HCL02">HCLTech</a> shares to 'Hold' from ‘Outperform’, and cut its rating for Tech Mahindra to 'Outperform' from 'High Conviction Outperform'.

CLSA has also removed <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/techmahindra/TM4">Tech Mahindra</a> from its ‘Focus List’, noting down concerns over the firm’s revenue growth recovery over the past 18 months not being at par with its own estimates or Street expectations.

It added that HCL Technologies is currently trading at around a 5 percent valuation premium, in comparison with peers like TCS and Infosys.

CLSA continues to favour <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/persistentsystems/PS15">Persistent Systems</a> and <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/coforge/NII02">Coforge</a> among mid-cap IT stocks, while <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/infosys/IT">Infosys</a> and Tech Mahindra remain its preferred picks in the large-cap space.
<h3><strong>IT stocks today:</strong></h3>
Infosys, HCLTech and <a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/wipro/W">Wipro</a> shares fell more than 2 percent each, while Persistent Systems shares were down around 2 percent. Tech Mahindra and Tata Consultancy Services (<a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/tataconsultancyservices/TCS">TCS</a>) shares fell more than 1 percent each, while Mphasis and Coforge shares were trading in the red with marginal losses.

<a href="https://www.moneycontrol.com/india/stockpricequote/computers-software/ltimindtree/LI12">LTIMindtree </a>shares bucked the trend to trade in the green with marginal gains.

<em>Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.</em>

Infosys, HCLTech shares fall 2% as CLSA says 'trim your positions', expects soft Q3 earnings for IT sector

IT Stocks: Infosys, HCLTech shares fall 2% as CLSA says 'trim your positions', expects soft Q3 earnings for IT sector

The shares of Indian IT companies dropped in trade on January 5 after CLSA issued a cautious note, advising investors to reduce their positions as the upcoming Q3 FY26 earnings are expected to be soft.

The sharp rise in the share prices pushed the Nifty IT index down more than 1.6 percent to 37,698.95, as seen at 11 am on Monday.
Here's what CLSA said:
CLSA in its latest note said that the Nifty IT index has recently outperformed the broader Nifty index, pushing the valuations closer to fair levels and limiting near-term upside, CNBC-TV18 reported.

The international brokerage has downgraded HCLTech shares to 'Hold' from ‘Outperform’, and cut its rating for Tech Mahindra to 'Outperform' from 'High Conviction Outperform'.

CLSA has also removed Tech Mahindra from its ‘Focus List’, noting down concerns over the firm’s revenue growth recovery over the past 18 months not being at par with its own estimates or Street expectations.

It added that HCL Technologies is currently trading at around a 5 percent valuation premium, in comparison with peers like TCS and Infosys.

CLSA continues to favour Persistent Systems and Coforge among mid-cap IT stocks, while Infosys and Tech Mahindra remain its preferred picks in the large-cap space.
IT stocks today:
Infosys, HCLTech and Wipro shares fell more than 2 percent each, while Persistent Systems shares were down around 2 percent. Tech Mahindra and Tata Consultancy Services (TCS) shares fell more than 1 percent each, while Mphasis and Coforge shares were trading in the red with marginal losses.

LTIMindtree shares bucked the trend to trade in the green with marginal gains.

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