As anticipated, the Indian equity markets opened nearly a per cent lower on April 17, 2023, due to disappointing Q4 numbers by marquee names of India Inc and cautious global markets. IT stocks were under the pressure with behemoth Infosys hitting a 52-week low after the March quarter earnings were below analysts' expectations. 

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At 09:18 am, the S&P BSE Sensex traded 1 per cent or 596 points lower at 59,834.58 levels while the broader Nifty50 index of the National Stock Exchange (NSE) was down 155 points or 0.87 per cent at 17,673.15 levels.

On the Sensex pack, 12 stocks were trading in the red and the rest 18 in the green. Infosys was the biggest loser while PowerGrid was the top gainer (up over 2 per cent).

Infosys last week reported a 7 per cent QoQ decline in its consolidated net profit at Rs 6,128 crore for the quarter ended March 2023 (Q4FY23). On a yearly basis, the profit grew 7.8 per cent. Revenue for the period stood at Rs 37,441 crore, down 2.3 per cent QoQ and up 16 per cent on a year-on-year (YoY) basis. Both the bottom line and top line missed D-Street analysts' estimates.

ICICI Securities has given a 'buy' rating on the stock with a target price of Rs 1,600. The company's EBIT margins declined 50 bps QoQ to 21 per cent and it signed 17 large deals with TCV of US$2.1 bn, down 36.4 per cent QoQ. "Infy’s share price has grown by ~2.5x over the past five years (from ~| 564 in April 2018 to ~| 1,388 levels in April 2023)," the brokerage said in its report dated April 15. As regards target Price & valuation, it said, "We value Infosys at Rs 1,600 i.e., 22x P/E on FY25E EPS."

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The brokerage notes key triggers for future price performance - 
• Differentiated digital and cloud capabilities to drive growth
• Growth remained broad-based and deal momentum robust, with digital transformation rapidly getting scaled up across verticals and regions
• Infosys to post rupee revenue growth of 10.3% CAGR in FY23-25E
• Double-digit return ratios, strong cash generation and a healthy payout

Among other buzzing stocks, HDFC Bank was trading 1.63 per cent lower at Rs 1,665.70 after its Q4 numbers failed to enthuse market participants.

The broader market was outperforming the frontline indices. At the time of writing this report, the S&P BSE MidCap index traded 0.04 per cent at 24,710.77 levels while the S&P BSE SmallCap index was trading 0.27 per cent lower at 28,074.12 levels.

The fear gauge, India VIX, was trading 8.85 per cent higher at 12.96 levels, indicating heightened volatility in the market.