Despite muted earnings in the previous quarter and little expectations of major recovery in the next quarter, what is driving the rally in tech stocks? The answer lies in FY25, on which everyone is pinning their hopes, decode Beena Parmar and Romita Majumdar.
Tata Consultancy Services, Infosys, HCL Technologies, and Wipro have all seen a decrease in sub-contractor expenses as a percentage of revenue, signaling improved profitability. These costs had surged during the pandemic but have now fallen below or near pre-outbreak levels.
Regarding real estate, Bhasin advises waiting for numbers and warns that new launch prices may not be sustainable. Sanjiv Bhasin suggests booking out of DLF and Godrej and getting into some banks after recent price correction. . He is also favourable towards Paytm, ICICI, Axis, Wipro, HCL Tech, ONGC, GAIL, SW Solar, and Dhanlaxmi Bank.
Indian equity markets rebounded led by banking, energy, and IT stocks. BSE Sensex rose 700 points, Nifty crossed 21,650. Top gainers were Tech Mahindra, Wipro, NTPC, Infosys, Axis Bank, and HCL Tech. Nifty IT and Nifty Financial Services surged. Polycab India and Shoppers Stop shares declined. Results of Reliance Industries, HUL and Ultratech Cement are awaited.