75 companies can dole out Rs 1.1 trillion from the 'extra cash' to shareholders.
Information technology majors Infosys, Wipro and HCL have posted strong results, but analysts are still skeptical on whether the domestic IT industry will be able to sail through the US slowdown, maintaining its profitability and margins. The results of the three firms were in line with market expectations. Analysts believe that the company was able to post a positive result mainly because it has been successful in moving its incremental business out of the US to Europe.
For top IT services firms, revenue growth in FY15 was the slowest since the Lehman crisis
The pace of job generation has slowed as IT firms look at automation to do testing
Slowing growth, stronger rupee and higher local hiring to pull firms down this financial year
Ajit Mishra, vice president, research, Religare Broking, answers your stockmarket queries.
The local markets are expected to react to global triggers until the government announces the Union Budget.
Business executives are finally dusting off their long-unused suitcases to resume travel, thanks to a good vaccination rate, a drop in fresh cases, and an easing of travel restrictions. It comes as a huge relief for the ravaged aviation, travel and hospitality sectors. "We are witnessing a 40 per cent recovery on pre-covid volumes from our business travellers, signalling the return of corporate confidence in air travel," said Indiver Rastogi, president & group head, Global Business Travel, Thomas Cook (India) & SOTC.
Ajit Mishra, vice president, Research, Religare Broking, answers readers' queries on stocks they own or want to buy.
Tata Consultancy Services (TCS) has been ranked the third most-valued IT services brand globally, after Accenture and IBM, according to a report by Brand Finance. Four Indian IT services companies -- TCS, Infosys, HCL and Wipro -- secured spots in the top-10 global tally.
Shares of IT companies were in focus with the Nifty IT and S&P BSE IT index gaining more than 2% in an otherwise lower market
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
At 15.05 PM, the 30-share Sensex was up 281 points at 28,238 and the 50-share Nifty gained 86 points at 8,577
IT services firms would no longer focus on large volume hiring from campuses like they did at least two to three years ago, as demands of clients are changing.
10 stocks which are most popular with brokerages right now and are expected to deliver maximum upside over the next 12 months.
The upsurge in capital market seems to have bypassed the information technology sector where the top 25 companies including Wipro, Infosys, HCL and NIIT, lost almost Rs 66,500 crore in market value since March 8, 2001.
Infosys, HCL might fare marginally better than TCS.
In the broader market, BSE Midcap and BSE Smallcap indices mirrored the gains in headline indices and rose 1% and 0.9% respectively.
Stocks below a certain size in terms of market capitalisation don't attract much institutional interest
India's cash-rich promoters are not the same as the wealthiest. For example, Mukesh Ambani is the richest Indian based on his stake in Reliance Industries, followed by Premji, the Adani family of the Adani group, and Radhakishan Damani of Avenue Supermarts.
With automation taking place at a much faster pace across industries especially in the tech space, domestic software firms that employee over 16 million are set to slash headcounts by a massive 3 million by 2022, which will help them save a whopping $100 billion mostly in salaries annually, says a report. The domestic IT sector employs around 16 million, of them around 9 million are employed in low-skilled services and BPO roles, according to Nasscom. Of these 9 million low-skilled services and BPO roles, 30 per cent or around 3 million will be lost by 2022, principally driven by the impact of robot process automation or RPA. Roughly 0.7 million roles are expected to be replaced by RPA alone and the rest due to other technological upgrades and upskilling by the domestic IT players, while it the RPA will have the worst impact in the US with a loss of almost 1 million jobs, according to a Bank of America report on Wednesday.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
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India's export-oriented information technology outsourcing industry is perhaps more optimistic today about growth prospects than it was in the past five years.
'At the heart of the strategic relationship between our countries are economic ties.'
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
HDFC and HUL are the latest entrants in the club
The Netherlands has emerged as India's fifth-largest export destination in 2021-22 (FY22), jumping from its 10th position a year ago. Exports to the fifth-largest economy in the European Union (EU) bolted 94 per cent to $12.5 billion in the financial year ended March 31. In FY22, the Netherlands surpassed Hong Kong, Singapore, the UK, Germany, and Nepal to become India's largest export destination in the EU. Germany, which was earlier India's top European export destination (eighth position), has now dropped two ranks to 10th place.
The December quarter, generally a soft one for India's IT sector due to holidays and furloughs in certain sectors, is expected to be further affected because of currency volatility.
Accenture's Q1 FY22 results have sent a wave of cheer among analysts, as the company raised its revenue guidance and said it expects double-digit growth in outsourcing, up from single digit to low double-digit growth expected earlier. Accenture's financial year ends on August 31. The company raised its revenue outlook for FY22 to 19-22 per cent in local currency, up from 12-15 per cent earlier.
Bloomberg estimates revenue at Rs 25,328 crore, up 4.6per cent sequentially and EBITDA margin of 27.2per cent
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Indian names that figure on the list, but lower down the pecking order include Tatat (101). Airtel (rank: 252), Infosys (287), Life Insurance Corporation of India (292), State Bank of India (334), HCL (390), Indian Oil (427), Reliance (445) and Larsen & Toubro (464).
Given their growth prospects and reasonable valuations, Mindtree, Hexaware and NIIT remain top picks of most analysts.
They need to upgrade their skills and become smaller, smarter organisations, says Devangshu Datta.
In a circular dated May 20, Sebi had directed the listed companies to evaluate the impact of Covid-19 on their capital and financial resources, profitability, liquidity position, assets, and ability to service debt. Instead, companies have spoken about the number of plants, warehouses and distribution centres that have resumed operations; work-from-home and safety measures undertaken for employees; and the labour shortage they are facing.
Combined net profit up 7.4% over a year ago, versus 11.2% in Q2.
Corporate India's earnings in the past two quarters were largely driven by the rupee's sharp fall versus the dollar in the second quarter of this financial year.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
A 150 basis points fall in realisations too weighed on the top-line.
The market players are expected to react to the better than expected factory output data for the month of August, which revealed that the industrial production grew by 6.4%.
