Benchmark equity indices continued their record-breaking rally today (April 9) as the BSE Sensex breached the 75,000-mark for the first time ever and Nifty climbed to its fresh new record peak. What contributed to the markets rally was major buying in IT stocks as 30-share BSE Sensex climbed 381.78 points to reach its all-time peak of 75,124.28 while NSE Nifty hit its record peak of 22,765.30.
From the Sensex basket, Infosys, Tech Mahindra, Tata Consultancy Services, HCL Technologies, Tata Motors, Wipro, ICICI Bank and Nestle were the major gainers while JSW Steel, Kotak Mahindra Bank, Reliance Industries and Larsen & Toubro were the laggards.
Why Infosys in top Nifty gainer?
Infosys emerged as the top Nifty gainer as the stock surging more than 2 percent to ₹1,509. This comes after BofA upgraded Infosys to “buy” from “neutral” and raised the target price to ₹1,785 from ₹1,735, citing attractive valuations. This means there could be over 18 percent upside from current levels in the stock which has declined 2 percent this year underperforming the Nifty IT index. The stock hit a 52-week high of ₹1,731 on February 6 but BofA said, “The normalisation of post-Covid spike in IT spends can be done with by mid-CY24. This transformation IT spends can see an uptick post US elections. We see upcoming earnings to provide last cut or floor to CY24E.”
What about Infosys March quarter results?
On March quarter results of the company, JM Financial said in preview report, “We expect Infosys to report flat revenue growth on a sequential basis in Q4FY24, with 20 basis points (bps) cross-currency tailwinds. The limited contribution from mega deals in Q4 is likely to weigh on Q4 financials as well. Margins are expected to contract by 10 bps to 20.4 percent in Q4 due to higher visa costs and wage hikes.”
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