Budget Buy-Sell Corner: Buy TCS And Infosys, Says Invest4Edu's Agarwala — NDTV Profit Exclusive
Live updates on budget day stock recommendations from top analysts on NDTV Profit.
KEY HIGHLIGHTS
Budget 2024: The Take-Off
Finance Minister Nirmala Sitharaman is set to present an interim budget today. Since the general election is scheduled this year, a full budget will be presented after the new government is sworn in.
Despite being an interim budget, investors’ focus will be on factors like the government’s commitment to the medium-term fiscal consolidation path, whether capex growth can continue with fiscal consolidation, and the supply of government bonds that the market may be able to absorb, according to a Goldman Sachs note.
An interim budget typically assesses the current economic state, capex expenditure and receipts. It also offers revised estimates for the ongoing fiscal, along with projections for the upcoming year.
On NDTV Profit, stay tuned for live updates on stock recommendations from experts, who will assess the interim budget's impact on companies and their share prices.
Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
Top Themes And Stock Bets
Aditya Shah from Hercules Advisors is optimistic on the following sectors and stocks
Chemicals: Navin Fluorine, Deepak Nitrite
Capital Goods: Larsen & Toubro, PSP Projects, UltraTech Cement
Pharmaceuticals: Syngene International, Divi's Laboratories
Financial Services: HDFC Bank, ICICI Bank, Kotak Mahindra Bank
Buy TCS And Infosys, Keep An Eye On Large-Cap IT Stocks
After the earnings report, the information technology sector has shown notable performance. A buying opportunity in the large-cap I.T. space, Agarwala.
He sees a long term buying opportunity in Tata Consultation Service and Infosys. Agarwala has a 'buy' rating on TCS with a target price of Rs 4,350. This implies an upside potential of 12.83%.
TCS Q3 Results: Key Highlights
Tata Consultancy Services Ltd.'s revenue rose meeting estimates, even as macro headwinds and furloughs weighed in a seasonally weak quarter.
Revenue of the Mumbai-based IT major rose 1.49% over the previous three months to Rs 60,583 crore in the quarter ended Dec. 31, according to an exchange filing on Thursday. That compares with the Rs 58,229 crore consensus estimate of analysts tracked by Bloomberg.
In the past year, the stock has witnessed a 13.26% surge, surpassing the benchmark Nifty 50 index, which saw an increase of 23.50%.
Infosys Q3 Results: Key Highlights
Infosys Ltd. has revised its growth expectations for the fiscal ending March 31, 2024, even as revenue declined in the October-December quarter.
Revenue of India's second largest IT services company fell 0.44% over the previous three months to Rs 38,821 crore in the quarter ended Dec. 31, 2023, according to an exchange filing on Thursday. That compares with the Rs 38,318 crore estimate of analysts tracked by Bloomberg.
In one-year, the stock has surged 6.86%, outpacing the benchmark Nifty 50 index, which recorded a increase of 23.50%.
'Keep An Eye At The Valuations', Says Aditya Shah
In the defense and railways sectors, stocks have seen a big jump in over a year. Investors should be cautious about the prices they are paying and carefully consider the valuations, Shah added.
Themes like Defense, Electric Vehicles, and Power are expected to play out over several years. "Valuations are really expensive in these sectors", Shah said.
"A bull market can seduce you to invest in stocks at wrong valuations".
Pocket Of Opportunities
The electric vehicle sector is a promising theme to explore, with solar panels, solar rooftops, and infrastructure, particularly in the power sector, Kant added.
Additionally, the automotive and auto ancillary sectors, coupled with financial investments, form a noteworthy basket for consideration, he noted
Kant is positive on Tata Power, Tata Chemicals and JBM Auto.
'Market To Enter Into Consolidation Period': Agarwala
Markets could enter into a long period of consolidation. On the downside, Nifty has good support around 21,400-21,200. On the upside, there is support at 21,900-22,000, Agarwala noted.
