The Nifty IT index jumped 27 percent year-to-date and 77 percent from March 23's low point, while Pharma index was up 46 percent and 82 percent in same periods.
HDFC Securities maintained positive outlook on IT sector despite the sector recently re-rating to +2-standard deviations (SD) valuations.
In muted earnings expectations for Q1FY21, beats were much higher than misses and that was one of major reasons and confidence booster for equity market not only in India but globally.
Given that India will remain a growth market in the long-term one cannot neglect growth stocks for a prolonged period of time, Jyoti Roy advised.
Infosys posted an 11.5 percent YoY growth in net profit at Rs 4,233 crore while Wipro posted a flat 0.11 percent YoY growth in net profit at Rs 2,390.40 crore.
The market's valuations have turned higher than long-period average and investors should be cautious and selective in picking stocks, say experts .
The road ahead for the market is bumpy and a lot will depend on the course of coronavirus pandemic. Moreover, global cues and measures of governments and central banks will remain important factors for the market.
Experts point out that the COVID-19 pandemic came in stages across the world and its fading away also will happen in phases over the next few quarters.
Current chart formation suggests a sustained rise above 7,900 will surely create a demand zone for the benchmark index.
VIX has seen been in decline mode and hit a 30-month low last week. Some bounce back can be seen from lower and may keep the market in check.
NTPC reacted to the brokerage call and rallied 1.6 percent intraday on December 12.
Lower interest rates and good monsoon are expected to help the economy. Also, positive developments in the global arena for the US-China trade deal and the Brexit resolution will provide additional support
Despite client-specific hiccups, the healthy deal pipeline and continuous large deal wins ensure growth acceleration from Q3, after the improved Q2. LTI guided to double-digit growth in FY20.
In a rangebound trade, experts advised focusing more on stock selection and trade management. Here is the list of 10 stocks which could return 14-24 percent in next 10-12 months:
Shares of IT solutions & services company rallied 123 percent from its issue price of Rs 710 per share. It listed on bourses in July 2016.
Strengthening Indian Rupee again acts as a constraint for IT companies. Looking at the technical structure, seems that INR could appreciate till 68.9 and 68.2 in the coming days
DHFL | Tube Investments | ICICI Bank | Mercator | Mphasis and Ambuja Cement are stocks, which are in the news today.
CLSA said strong growth in US is positive for most firms, but more for Infosys & Cognizant while strong growth in CMT is positive for Tech Mahindra, Wipro & HCL Technologies
Elara Capital expects a revival in midcaps riding on price and valuation comfort based on historical trends, strong flows from FPIs and DIIs and strong earnings revival
Earnings growth for FY20 will get better by H2FY20 led by positive lag-effect of reforms,” says Vinod Nair, Head Of Research at Geojit Financial Services
The Q2FY19 earnings season so far has been in line with the expectations. Strong results declared by IT companies, upbeat numbers from RIL and robust growth reported by the FMCG companies are indicative of sustained demand environment.
Prabhudas Lilladher says that the current volatility should be used as an opportunity accumulate fundamentally strong stocks for long term.
Axis Direct highlights how the year has been a volatile one, with US-China trade tensions, rising crude prices, depreciating rupee, and debt market liquidity crisis dominating cues that are responsible for a correction in the market
Invest in quality companies with a healthy growth outlook and reasonable valuations.
Experts have advised investors to not get rattled by volatility and continue to stay invested in high-quality names with steady balance sheets and management.