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HCLTech and Wipro Take Center Stage as Dalal Street Awaits Quarterly Earnings After Infosys and TCS Results

New Delhi, 12 January 2024. After Infosys and TCS delivered mixed quarterly results, Indian investors are eagerly awaiting earnings reports from IT giants HCLTech and Wipro later today. Analysts expect contrasting performances from the two companies, setting the stage for a potentially volatile trading session.

HCLTech: Eyes on Upward Momentum

HCLTech is predicted to outperform, brushing off seasonal headwinds and delivering strong earnings for the December quarter. Analysts anticipate a 5% sequential increase in consolidated revenue to Rs 27,959.40 crore and a 7% rise in net profit to Rs 4,085 crore. This optimism stems from the company’s robust deal momentum and consistent track record of exceeding expectations. If the estimates hold true, HCLTech’s strong performance could further bolster its stock price, which has already soared 19% in the last quarter and continued to climb in the new year.

Wipro: Potential for Further Correction?

On the other hand, Wipro’s outlook appears less rosy. The company may again disappoint investors, following a flat revenue growth and profit decline in the previous quarter. Analysts see a muted performance, with revenue remaining largely unchanged and profit potentially dipping slightly. This would exacerbate the recent weakness in Wipro’s stock, which has already corrected 5% this month after the initial frenzy surrounding its Q2 results fizzled out.

Key Metrics to Watch

Investors will be closely scrutinizing key metrics such as revenue growth, margins, order book size, and guidance for the coming year. Additionally, any commentary on client spending trends and the impact of global economic uncertainties will be closely listened to.

Potential Scenarios

HCLTech’s strong performance could further ignite its rally, while Wipro’s weak results could trigger further correction in its stock price. The overall sentiment on Dalal Street could tilt towards cautious optimism if both companies deliver decent results, but a mixed bag of outcomes could lead to choppy trading.

In conclusion, the earnings reports of HCLTech and Wipro are likely to be major market movers today. HCLTech’s strong expected performance could provide a boost to the IT sector, while Wipro’s potential for further disappointment could dampen the mood. Investors should closely monitor the released results and adjust their strategies accordingly.

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