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Last Updated : Sep 11, 2019 01:08 PM IST | Source: Moneycontrol.com

Wipro, HCL Tech pull IT stocks in red but CLSA remains bullish — here's why

The S&P BSE IT was also trading in the red dragged by L&T Infotech which shed 2 percent followed by NIIT Tech, Persistent Systems, Midntree and L&T Tech.

Sandip Das @Im_Sandip1
 
 
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Benchmark indices continue trading on a positive note with Sensex up 123 points at 37,268 mark while the Nifty gained 29 points and is trading at 11,032 level.

The Indian rupee was trading lower by 14 paisa at 71.84 per dollar versus Monday's close 71.70. The Indian rupee has recovered from the intraday low and is trading marginally higher at 71.67 per dollar.

The rupee pared initial gains to settle almost flat at 71.71 against the US dollar on September 9 as rising crude oil prices kept investors edgy. Rising crude oil prices and foreign fund outflows weighed on the domestic currency, PTI said.

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Defensive sectors including Nifty IT was trading down by over a percent. The top losers included Wipro which was down over 2 percent followed by HCL TechInfosys, Tata Consultancy Services and Oracle Financial Services were other major losers.

The S&P BSE IT was also trading in the red dragged by L&T Infotech which shed 2 percent followed by NIIT Tech, Persistent Systems,  Mindtree and L&T Tech.

CLSA has come out with outlook on top IT names. It has a buy call on HCL Tech with target of Rs 1,380 per share due to rebounding organic growth and undemanding valuation with organic growth acceleration being driven by large deal wins.

The global research firm has a sell call on Wipro with target at Rs 220 per share. It said that even though digital growth is comparable, the overall growth rates is behind peers. The company's weak Q2 guidance highlights its persistent execution challenges. The research firm expects Wipro to remain at the bottom of its peer growth range in FY21.

CLSA has a buy call on TCS with target of Rs 2570 per share. It feels that deal wins and strong execution indicate a sustained growth recovery.

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First Published on Sep 11, 2019 01:08 pm
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