<ul><li><keyword id="6357150" type="General" weightage="80" keywordseo="tcs" source="Orion">TCS</keyword> reported a revenue drop in Q2, while <keyword id="6354512" type="General" weightage="80" keywordseo="infosys" source="Orion">Infosys</keyword> and <keyword id="28126" type="General" weightage="80" keywordseo="hcl" source="Orion">HCL</keyword> cut FY24 revenue guidance.</li><li>Brokerages made only minor tweaks to their estimates and most of them maintained their ratings.</li><li>Large deal wins, improving margins and better utilization rates is giving brokerages confidence in the sector. </li></ul>The Indian IT sector has kicked off the <keyword id="56260" type="General" weightage="20" keywordseo="q2-earnings" source="Orion">Q2 earnings</keyword> season on a somber note. The Big 3 tech companies – TCS, Infosys and <keyword id="141968" type="General" weightage="80" keywordseo="hcl-tech" source="Orion">HCL Tech</keyword> painted a gloomy picture of the outlook ahead. With project rampdowns, revenue leakages and cautious clients — they have re-calibrated the revenue earnings for the entire year. TCS reported its first ever drop in constant currency revenues in four years. Infosys and HCL trimmed their revenue guidance for FY24, while TCS does not give guidance. Infosys now expects its constant currency revenues to grow anywhere between 1-2.5% and HCL expects the same to grow by 5-6% for FY24. Mega deal wins offer comfort: Brokerages As expected, the IT sector stocks have fallen in the last two days, yet brokerages have only done minor tweaks to their earnings estimates and maintained their buy or add ratings. Their mega deal wins, large order books; and confidence that they will hit the upper end of their guidance is providing them cushion, they say. Few have changed their ratings on the IT stocks. “From a long-term perspective, we believe TCS has built a resilient business model by securing multiple long-term contracts with the world’s leading brands. It has also established robust capabilities that will enable it to gain market share moving ahead,” said <keyword id="6407277" type="General" weightage="50" keywordseo="axis-securities" source="Orion">Axis Securities</keyword>. The ₹17,000 crore buyback TCS announced at a share price that’s premium to current its price also offers mid-term levers ahead. Kotak Institutional Equities (KIE) also said that Infosys has won a fair share of large deals to provide some visibility for FY25 growth. It cut its FY24-26 revenue estimates by 1-2% while maintaining a buy rating. Even for HCL Tech, KIE marginally tweaked its FY24-26 revenue estimates by 0.3-0.8%. With regards to the bad news delivered in Q2, little of it has come as a surprise. The street has been pricing in possible recession in the US and slowdown in Europe for over a year now. The IT sector gained very little or nothing from the recent bull run seen in the broader markets. In the last month, all of Nifty’s IT index constituents lost value with the exception of LTTS. Coforge, Tech Mahindra and HCL Tech shed over 4% of their values. The Nifty IT Index itself shed around 3%. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IT stock </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30 day change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-4.57 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.07 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">L&amp;T Technology Services </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.74 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TechM </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.31 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">LTI Mindtree </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-6.37 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Persistent </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.17 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Coforge </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-6.64 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-4.11 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.37 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mphasis </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.50 </td></tr></tbody><tbody></tbody></table>Source: NSE Margins present a pretty picture In times of macro-economic headwinds, IT companies are working to improve their margins. Not only have their headcount additions waned, they are pushing for higher utilization levels, lowering subcontracting expenses and also cutting down their discretionary spends much like their clients. TCS’ earnings before interest and tax (EBIT) margins went up quarter-on-quarter by 110 basis points to 24.3%. “We believe continued supply side tailwinds should help TCS protect and expand margins despite lower growth/mega deal ramp ups in the second half,” said a report by IIFL. HCL Tech and Infosys maintained their operating margin guidance for the year, in spite of revenue cuts – indicating that they intend to keep up their productivity levels. HCL expects its FY24 margins at 18-19%, Infosys’ expects its annual margins to be anywhere between 20-22%. Brokerages also back their confidence. “The 40 basis point margin (EBIT) improvement during the quarter was encouraging and indicated Infosys’ ability to manage its workforce despite the lack of an operating leverage opportunity. We now expect FY24 EBIT to go up 30bp YoY,” said a report by Motilal Oswal. Also, all three reported reduction of attrition to around 14% recording a dramatic slip sequentially. That too offers a cushion ahead that their people costs will be under control, unlike last year. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[<blockquote class="stocktwits-embedded-post" data-origin="https://stocktwits.com" data-id="547547523"> After months of trading sideways, trend for $TCS.NSE has recently turned upwards (note the trend bars on top of the chart; green is for uptrend, yellow for sideways and red for downtrend). At present, $TCS.NSE is trading at the lower end of its 3-year valuation range. For short-term, the price might see some negative reaction after the results since the growth momentum has slowed down and market was expecting a higher buyback price, but for long-term, the uptrend has started. One can go LONG, with a Stop Loss of Rs. 3,300. &mdash; (@puneetarora1in) <a href="https://stocktwits.com/puneetarora1in/message/547547523"> October 12, 2023</a></blockquote><script async src="https://stocktwits.com/min/widgets.js" charset="utf-8"></script>]]></cdata></div>

Brokerages not rattled by big 3 IT players' tepid Q2 performance

<ul><li>Wipro's share price is up by 16% on Wednesday, morning after the Indian IT giant reported its Q1FY21 results. </li><li>Wipro's revenue took a massive dip of 5.3% in Q1Fy21 as compared to the preview quarter. </li><li>The company’s profit was up by 2.1% quarter on quarter. </li><li>It has 42 new customers but most its revenue this quarter came from existing clients </li></ul>Wipro’s revenue plummeted by 5.3% in its first quarter of 2020-21 but its profits were up by 2.1% quarter-on-quarter (QoQ). “We expanded the margins during the quarter, despite lower revenues, on the back of solid execution of several operational improvements and rupee depreciation,” said Wipro’s Chief Financial Officer (CFO), Jatin Dalal. <div type="image" title="wipro profit (1)" msid="76975094" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s profit over the last five quarters&amp;lt;/p&amp;gt;"></div> Wipro's stock price was up by 16% during the morning trade on Wednesday, after the company announced its Q1FY21 results. <div type="image" title="wipro share price (1)" msid="76975119" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s share price over the last month&amp;lt;/p&amp;gt;"></div><div type="Article" hostid="261" msid="76973619" title="Wipro share price 16% increase leads to surge in Infosys share price too" mstype="2" mssubtype="0"></div> A fact that played a factors in both profits and margins was foreign exchange. A weaker rupee helps Indian IT services companies because since they export most of their services, and so their billing is in dollars. "We have a taken a larger provision which is more call led, as per expected credit loss, which is driven by the environment not led by a specific situation or specific customer — or any specifics for that matter," Wipro's management told analysts during the earnings call. <div type="image" title="wipro margins" msid="76975228" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s IT services margins over the last five quarters&amp;lt;/p&amp;gt;"></div> "The view is clearly to shoot for stabilisation of the revenue of the top line in the second quarter.," said Wipro CEO Theirry Delaporte during the earnings call. The company has added 42 new customers to its docket, including 13 which are larger than $100 million including the John Lewis Partnership in the UK. It also entered into a strategic multi-year deal with Germany’s E.ON energy company. However, most of its revenue — 99.7% — comes from existing clients. <div type="image" title="Wipro revenue" msid="76975251" hostid="261" caption="&amp;lt;p&amp;gt;Wipro&amp;#39;s gross revenue over the last five quarters&amp;lt;/p&amp;gt;"></div> With respect to hiring, Wipro plans to continue adding new employees to its roster in the coming quarter. “Lateral hiring never stopped. This quarter Wipro has hired 7,000 people gross and we’ve hired across the globe, wherever there was demand,” said Wipro's Chief Human Resources Officer, Saurabh Govil. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/wipro-share-price-16-increase-leads-to-surge-in-infosys-share-price-too/articleshow/76973619.cms">Wipro share price 16% increase leads to surge in Infosys share price too</a> <a href="https://www.businessinsider.in/careers/news/wipro-new-hiring-to-continue-as-it-adds-7000-employees-in-q1/articleshow/76972570.cms">After last quarter’s massive dip, Wipro adds 7,000 employees with plans to continue hiring in Q2</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-reported-revenue-dips-but-profit-grows-in-q1-fy21-results/articleshow/76875445.cms">TCS revenue dips by 6.3% ⁠— CEO says nearly all verticals were hit by COVID-19 crisis</a>

Wipro management pins hope on wider margin and new clients while revenue takes a dip

<ul><li>The banking, financial services and insurance segment for most IT companies in India showed underwhelming growth in the third quarter of the financial year 2020.</li><li><keyword id="30331" type="CITY" weightage="20" keywordseo="HCL-Technologies">HCL Technologies</keyword> was the only company to report double-digit growth among the Tier-I group.</li><li>Companies remain cautiously optimistic about the coming quarter pegging growth in BFSI to deals in pipeline getting finalised.</li></ul>HCL Technologies was the only Indian IT company this quarter to report double-digit growth of banking, financial services and insurance (BFSI) segment. On a year-on-year basis, Infosys, Tata Consultancy Services (TCS) and Wipro lagged woefully behind although, for them, the contribution of BFSI to their overall revenue is much higher. All 3 companies make nearly a third of their revenue from the BFSI segment. 
 
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 However, all three companies and their shareholders have had mixed reactions to the slowdown in BFSI. BFSI is a macro challenge, not a Wipro challengeDespite <a href="https://www.businessinsider.in/business/corporates/news/wipros-profits-and-margins-fall-even-as-its-digital-business-grows/articleshow/73249220.cms">Wipro’s marginal growth in BFSI</a>, earnings from the segment accounted for nearly one-third of its overall revenue. Half of Wipro’s top clients are from the BFSI segment. However, over time, the share of revenue from the top five has been declining. Wipro’s CEO Abidali Neemuchwala feels that any Wipro-specific BFSI challenges have been addressed. [make it embed quote] “BFSI is a macro challenge and it’s not a Wipro-specific challenge. In the last 2-3 years, we had industry-leading growth in BFSI,” he told <a href="https://timesofindia.indiatimes.com/business/india-business/course-correction-done-we-are-slowly-taking-off-wipro-ceo-neemuchwala/articleshow/73289293.cms">Times of India.</a> HCL Tech remains cautiously optimistic Regardless of how companies expect demand to move, overseas clients have been taking more time to finalise deals across the board. However, HCL Technologies CEO C Vijayakumar feels that it’s nothing new. 
 
 <div type="ExtQuote" text="“I would say that it doesn’t have anything to do with the macro environment. It’s just the whole decision-making process. We’ve seen momentum in the last few days and we believe our Q4 will be a strong booking portfolio,”" auname="C Vijayakumar, HCL Tech CEO"></div>




 Given their performance, it’s <a href="https://www.businessinsider.in/business/corporates/news/hcl-raises-full-year-guidance-after-winning-a-dozen-new-deals/articleshow/73329323.cms">not surprising that HCL Technologies</a> leadership has a positive outlook for the coming days. “The best way that we define the demand environment is to really look at the deal pipeline. Our pipeline is at a historic peak. Our pipeline is very good. So I’m optimistic about the demand environment,” said Vijayakumar. Infosys feels BFSI is a mixed bag While expecting strong demand from clients, Infosys claims that BFSI is somewhat of a ‘mixed bag’. “We have seen more than anticipated further impact in Europe and the rest of the world. However, we have, on the positive side, seen some growth in North America — banking in North America. That's been a mixed bag. We expect some degree of softness to continue in the coming quarters,” said UB Pravin Rao, COO at Infosys, during the company’s earnings call on 10 January. The company <a href="https://www.businessinsider.in/business/corporates/news/infosys-earnings-report-muted-quarterly-growthly-of-1-in-q3-2020/articleshow/73190620.cms">increased its full-year guidance</a> for revenue growth to 10-10.5%. “Q3 results further underscore that we remain steadfast in our journey of sustained client relevance and deepening engagement with them,” said Salil Parekh, Infosys CEO. TCS blames structural challenges Tata Consultancy Services (TCS), the world's third-largest IT services company, has spun a totally different narrative to the BFSI slowdown. “We are gaining market share,” declared N Ganapathy Subramaniam, COO of TCS, at the post-earnings conference. To be clear, the subdued demand should be as bad on TCS as it is for Infosys or Wipro. Moreover, North America is the company’s biggest market — it accounts for more than half of TCS’ revenue — and, BFSI witnessed the slowest growth in that geography of a mere 4.1%. But the management has a different take on it. “BFSI was a complex story. While there have been no budget cuts at our clients, they want more with less and want to optimise their operations,” CEO Rajesh Gopinathan said during the call with analysts, adding that the company managed <a href="https://www.businessinsider.in/business/news/these-are-the-big-deals-bagged-by-tcs-in-the-the-last-three-months/articleshow/73329078.cms">to bag 20 new deals</a> in the quarter. Simply put, what the management is saying is as the sector slows down, companies are investing in optimising operations to make themselves cost-competitive. And, according to the management, TCS’ size and scale put it in a better position to corner the lion’s share of the market⁠— a move that will pay off rich dividends when the demand improves. Investors will have to wait and watch to see if the strategy pays off. See also: <a href="https://www.businessinsider.in/business/corporates/news/wipros-profits-and-margins-fall-even-as-its-digital-business-grows/articleshow/73249220.cms">Wipro's profit and margin fall even as its digital business grows</a> <a href="https://www.businessinsider.in/business/corporates/news/hcl-raises-full-year-guidance-after-winning-a-dozen-new-deals/articleshow/73329323.cms">HCL raises full year guidance after winning a dozen new deals</a> <a href="https://www.businessinsider.in/business/corporates/news/infosys-earnings-report-muted-quarterly-growthly-of-1-in-q3-2020/articleshow/73190620.cms">Infosys has raised full-year growth guidance⁠— the stock market was a step ahead of it</a>

TCS, Infosys, HCL Tech, and Wipro have different reactions to the slowdown in banking, financial services, and insurance

<ul><li>First quarter earnings for Indian IT service companies will show true impact of the coronavirus lockdown on revenue. </li><li>Tata Consultancy Services (TCS) and Infosys will bear the least impact with Tech Mahindra expected to be hit hardest. </li><li>Work from home and rupee depreciation may offset the impact on operating margins due to the fall in utilisation levels. </li></ul><keyword id="9541846" type="UNKNOWN" weightage="20" keywordseo="india-it-services-companies">India IT services companies</keyword> are gearing up to post their first-quarter results starting with Tata Consultancy Services today. Between the months of April through to June, the numbers are likely to be poor. Any recovery that can be expected will likely occur in the second quarter. The third and fourth quarters, for IT services companies, are seasonally weak. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Expected dip in revenue </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-3.7% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Technologies </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-6% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.7% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-7.5% </td></tr></tbody></table>Source: Edelweiss Securities Note: Revenue dip calculated in constant currency (CC) terms The positive is that work from home has likely drummed down expenses and overhead costs that could help the operating margins with added boost from a weak rupee. Since most of the companies export services, their billing in non-rupee currencies, primarily the dollar. Hence, a weak rupee may magnify the earnings. "While a fall in utilisation levels and negative operating leverage should hurt margins, they should be partly offset by sharp rupee depreciation, the deferral of salary revisions, and the absence of certain general and administrative (G&amp;A) or PM CARES fund-related expenses," said brokerage firm <a href="https://www.cnbctv18.com/earnings/it-sector-q1fy21-preview-tcs-to-kick-off-earnings-season-tomorrow-what-to-watch-out-for-6285781.htm">Motilal Oswal</a>. Sharp dip in revenues to be expected The top five IT services companies — TCS, HCL Technologies, Infosys, Wipro and Tech Mahindra — are likely to post a 5% to 8% dip in their dollar revenues due to the impact of the coronavirus on them and their clients, according to <a href="https://www.cnbctv18.com/market/stocks/how-to-evaluate-it-sectors-q1-numbers-in-a-likely-washout-quarter-6245551.htm">CLSA’s report.</a> “We think the markets are still in a mood to overlook any misses given the continued macro uncertainty and even the lack of negative could trigger positive share reactions,” added <a href="https://www.business-standard.com/article/markets/tcs-q1-preview-covid-19-pandemic-to-hit-earnings-annual-guidance-unlikely-120070800473_1.html">Divya Nagarajan</a> from global research and brokerage firm UBS, highlighting that it will still be a low-point for revenues although a gradual recovery can be expected in the second quarter. Edelweiss Securities also believes that the coronavirus lockdown will have had a “severe impact” on IT services companies. “The lockdowns have limited new deal wins and will have a ripple effect on getting substantial growth back till FY21 end," it said in its <a href="https://www.cnbctv18.com/earnings/it-sector-q1fy21-preview-tcs-to-kick-off-earnings-season-tomorrow-what-to-watch-out-for-6285781.htm">report.</a> Annual guidance is unlikely to be on the cards. "Despite indications of improved demand visibility, we expect Infosys, HCL and L&amp;T to wait for Q2FY21 to evaluate reinstating formal guidance," said CLSA. Sector-wise impact Most of the impact from the coronavirus pandemic will be borne by verticles like travel, transportation, energy, retails and manufacturing. Financial and life science vertices may provide some cushion, according to <a href="https://www.business-standard.com/article/markets/tcs-q1-preview-covid-19-pandemic-to-hit-earnings-annual-guidance-unlikely-120070800473_1.html">analysts. </a> Last quarter, management commentary from TCS indicated that certain businesses would likely face difficulty in making payments. This quarter, Days Sales Outstanding (DSO) — which represents the number of days it takes a company to collect its client payments — will be a key metric to watch for the troubled verticles. During the upcoming earnings the brokerage firms recommend that investors should focus on the following aspects: <ul><li>Look at order booking instead of the pipeline since it results the company’s portfolio strength and sale engine effectiveness. </li><li>Evaluate the exposure to discretionary spending by looking at the dip in revenue in ‘non-troubled verticles’. </li><li>Focus on the margin management drivers since cost-structure deflation would reflect long-term positive growth. </li></ul>SEE ALSO:<a href="https://www.businessinsider.in/stock-market/markets/news/tcs-share-price-and-first-quarter-earnings-estimate/articleshow/76827257.cms">TCS shares are hot again as investors hope for a quarterly surprise</a> <a href="https://www.businessinsider.in/stock-market/markets/news/tcs-earnings-covid-19-cases-foreign-investment-flows-heres-what-will-move-sensex-and-nifty-50-this-week/articleshow/76806205.cms">TCS earnings, COVID-19 cases, foreign investment flows – here’s what will move Sensex and Nifty 50 this week</a>

TCS and Infosys to face least impact — Indian IT companies likely to report sharp decline in revenue during first quarter

Both <keyword id="19896382" type="General" weightage="20" keywordseo="Sensex" source="keywords">Sensex</keyword> and <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> closed the day in red. While Sensex dipped around 102.57 points during the day to close at 80,502.08 points, Nifty ended the day at 24,509.25 points, down by 0.09% on July 22, 2023. As for broad-market indices, all closed in green except for Nifty50. While Nifty next 50 inched up 1.28% during the day, midcap 50 also jumped up by 1.74%, while India VIX inched up almost 4.13% to close the day. Amidst sectoral indices, <keyword id="19931572" type="General" weightage="20" keywordseo="FMCG" source="keywords">FMCG</keyword>, <keyword id="19989715" type="General" weightage="20" keywordseo="IT" source="keywords">IT</keyword>, realty, media and oil and gas closed the day in red. On the other hand, <keyword id="20102108" type="General" weightage="20" keywordseo="metal" source="keywords">metal</keyword>, pharma and <keyword id="6354525" type="General" weightage="20" keywordseo="healthcare" source="Orion">healthcare</keyword> gained over 1% each during the day. Out of the 2,817 stocks traded during the day, 1,544 saw advances, while 1,179 declined. Another 94 stocks remained unchanged. 70 stocks hit their 52-week high prices, while 33 stocks hit their 52-week low as well. 113 stocks closed the day post touching the upper circuit, while 122 stocks remained in lower circuit during the day. Grasim (up by 2.58%), UltraTech Cement (up by 2.41%), NTPC (up by 2.22%), <keyword id="45123" type="General" weightage="20" keywordseo="HDFC" source="Orion">HDFC</keyword> (up by 2.16%) and Mahindra and Mahindra (up by 2.03%) were amongst the top gainers during the day, while Wipro's stock took a significant hit and was down by 9.31%. Reliance (down by 3.42%), Kotak Bank (down by 3.25%), ITC (down by 1.74%) and SBI Life (down by 1.74%) were amidst the leading laggards. FM Nirmala Sitharaman tabled the Economic Survey 2023-24 earlier today in the parliament, painting a positive picture of the economy for the short-term. Per the survey, the economy 's real GDP grew at about 8.2% in FY24, while it also managed to trim down its fiscal deficit from 6.4% of GDP in FY23 to 5.6% of GDP in FY24. The economy is expected to grow at about 7% over the medium term, with unemployment rates also sobering to 3.2% in 2022-23. <h2>Cautious outlook ahead of budget</h2>Mr. Ajit Mishra – SVP, Research, Religare Broking Ltd notes that the markets began the week on a subdued note and ended nearly unchanged, reflecting caution ahead of the <keyword id="19908389" type="General" weightage="20" keywordseo="union-budget" source="keywords">Union Budget</keyword>. The Nifty index opened lower and fluctuated within a range before closing at the 24,509.25 level. Initially, weak global cues and pressure on index heavyweights like Reliance and Kotak Bank following their earnings reports weighed on sentiment, he said. "However, the strength in banking major HDFC Bank, in reaction to its results, and continued buoyancy in IT heavyweight Infosys Ltd offset the negativity. Sector-wise, auto, metal, and pharma edged higher, while realty and IT were among the top losers. With all eyes on the Union Budget, volatility is expected to remain high on Tuesday. We thus maintain a cautious stance and recommend a hedged approach. Traders should seek buying opportunities in low-beta counters, especially in the defensive sectors, and remain selective in other areas", continued Mishra. Aditya Gaggar, director of Progressive Shares highlights that the oversold condition coupled with a bullish divergence in the RSI saved the Index from a steep fall. Mixed market activity was seen where the mid and small caps soared higher while the index stayed in a well-maintained range to end the session at 24,509.25 with a marginal loss of 21.65 points.Auto and pharma sectors advanced over 1% to become outperformers of the day while realty was the major laggard followed by IT. "Considering the Union Budget outcome, wild swings can be expected on both sides where 24,200 will be considered as immediate support while the higher side seems to be capped at 24,800", explained Gaggar.

Stock market closing: Markets take a cautious stance ahead of the budget

<ul><li><keyword id="20020567" type="General" weightage="20" keywordseo="Equity-benchmarks" source="keywords">Equity benchmarks</keyword> Sensex and <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> closed higher on Friday amid a buying in index majors <keyword id="19981454" type="General" weightage="20" keywordseo="MM" source="keywords" meta.keywordsubtype="org" meta.entityname="M&amp;M" meta.hostid="261" meta.entityid="M&amp;M">M&amp;M</keyword>, <keyword id="19936674" type="General" weightage="20" keywordseo="Reliance" source="keywords">Reliance</keyword> Industries and ITC.</li><li>The 30-share BSE Sensex climbed 253.31 points, or 0.34%, to settle at 73,917.03.</li><li>M&amp;M was the biggest gainer on the Sensex chart, rising 5.97%, followed by JSW Steel, Ultra Cement, Kotak Bank, ITC and NTPC.</li></ul>Equity benchmarks Sensex and Nifty closed higher on Friday as buying in index majors M&amp;M, Reliance Industries and ITC helped the indices rebound from early lows. The 30-share BSE Sensex climbed 253.31 points, or 0.34 per cent, to settle at 73,917.03. The NSE Nifty advanced 62.25 points, or 0.28 per cent, to 22,466.10. M&amp;M was the biggest gainer on the Sensex chart, rising 5.97 per cent, followed by JSW Steel, Ultra Cement, Kotak Bank, ITC and NTPC. "Nifty opened flat on Friday in line with global cues. After an initial knee-jerk reaction, the index traded in the positive zone and settled at 22,466 levels. From a technical perspective, the index is maintaining a strong hold above the 21-day exponential moving average (21-DEMA), which is positioned at 22,320 levels. As long as the index holds above the 22,320 levels, the rally could extend to 22,600. However, we are gradually approaching the previous resistance of 22,800, where the index has formed a bearish engulfing candle. Thus, traders are advised to take some profit off the table," said Hrishikesh Yedve, AVP Technical and Derivatives Research, Asit C. Mehta Investment Interrmediates. Reliance Industries gained 0.73 per cent to close at Rs 2,871 apiece. In contrast, TCS, HCL Tech, HUL, Nestle Industries, Bajaj Finserv, Wipro and Infosys were among the losers. "Despite mixed global signals and uncertainties surrounding the US Fed, the Indian market experienced a robust recovery, largely fuelled by the outperformance of the broader market and positive Q4 earnings. "Further, some index heavyweight earnings surpassed expectations, and midcap and small-cap stocks continued to exhibit buying interest during dips. Auto and consumer durables particularly stood out with strong earnings momentum," said Vinod Nair, Head of Research, Geojit Financial Services. In Asian markets, Shanghai and Hong Kong logged gains, while Seoul and Nikkei closed in the red. European markets were trading in the negative territory. Wall Street ended in the green in the overnight trade on Thursday. Global oil benchmark Brent crude rose 0.25 per cent to USD 83.48 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 776.49 crore on Thursday, according to exchange data. On Thursday, the BSE benchmark climbed 676.69 points or 0.93 per cent to settle at 73,663.72. The NSE Nifty surged 203.30 points or 0.92 per cent to 22,403.85. SEE ALSO:<a href="https://www.businessinsider.in/tech/mobile/webstories/motorola-edge-50-fusion-vs-oneplus-nord-ce-4-price-specs-and-features-compared/slidelist/110197390.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/webstories/motorola-edge-50-fusion-vs-oneplus-nord-ce-4-price-specs-and-features-compared/slidelist/110197390.cms" target="_blank">Motorola Edge 50 Fusion vs OnePlus Nord CE 4 – price, specs and features compared</a><a href="https://www.businessinsider.in/india/news/average-housing-prices-up-10-in-jan-mar-across-the-top-eight-cities/articleshow/110181627.cms" target="_blank"></a> <a href="https://www.businessinsider.in/india/news/average-housing-prices-up-10-in-jan-mar-across-the-top-eight-cities/articleshow/110181627.cms" target="_blank">Average housing prices up 10% in Jan-Mar across the top eight cities</a><a href="https://www.businessinsider.in/tech/mobile/news/motorola-edge-50-fusion-with-144hz-poled-display-500mah-battery-launched-starting-at-22999/articleshow/110170762.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/mobile/news/motorola-edge-50-fusion-with-144hz-poled-display-500mah-battery-launched-starting-at-22999/articleshow/110170762.cms" target="_blank">Motorola Edge 50 Fusion with 144Hz pOLED display, 5,00mAh battery launched starting at ₹22,999</a>

Sensex climbs over 250 pts on buying in Reliance, M&M

<keyword id="19896382" type="General" weightage="20" keywordseo="Sensex" source="keywords">Sensex</keyword> scaled the 76,000 level for the first time while <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> hit a new lifetime peak before closing marginally down on Monday as investors booked profits at record levels amid high volatility ahead of the results of <keyword id="19912155" type="General" weightage="20" keywordseo="Lok-Sabha-polls" source="keywords">Lok Sabha polls</keyword>. The 30-share <keyword id="19895774" type="General" weightage="20" keywordseo="BSE" source="keywords" meta.keywordsubtype="org" meta.entityname="BSE" meta.hostid="261" meta.entityid="BSE">BSE</keyword> Sensex closed lower by 19.89 points or 0.03 per cent lower at 75,390.50. Intra-day, the barometer climbed 599.29 points or 0.79 per cent to an all-time peak of 76,009.68 following gains in select banking, financial and IT shares. However, investors preferred to book profits at record levels and the index declined around 835 points from the day's high to hit a low of 75,175.27. Broader Nifty of the <keyword id="6354646" type="General" weightage="20" keywordseo="NSE" source="Orion">NSE</keyword> declined by 24.65 points or 0.11 per cent, to end at 22,932.45. The 50-issue barometer rose by 153.7 points or 0.66 per cent to hit a new lifetime high of 23,110.80 during the day. However, it tanked around 240 points at the fag-end due to selling in oil, energy and FMCG shares. Index heavyweight Reliance Industries declined nearly 1 per cent, dragging the benchmark indices into the negative. Selling in FMCG giant ITC also eroded gains. Equity benchmarks were on a record-breaking rally for the third straight day ahead of the results of Lok Sabha polls and a rally in global markers. The results of the ongoing general elections will be declared on June 4. Sensex breached the historic 75,000-mark for the first time on April 9. It took 31 trading sessions for the benchmark to climb 1,000 points to reach the 76,000-mark on Monday. The BSE benchmark took 21 trading sessions to reach 75,000-mark on April 9 after hitting the 74,000-level on March 6. From the Sensex pack, Wipro, NTPC, Sun Pharma, Mahindra &amp; Mahindra, ITC and Reliance Industries were among the biggest laggards. IndusInd Bank, Axis Bank, Bajaj Finance, HDFC Bank, Larsen &amp; Toubro and State Bank of India were among the major gainers. "The bulls are facing stiff resistance at 23,000 levels as investors start booking profit at higher levels to avoid any knee-jerk reaction in the market ahead of the election result. Better earnings growth, the expectation of a revival in private capex, and a moderation in FIIs selling intensity are the key positive triggers in the market," Vinod Nair, Head of Research, Geojit Financial Services, said. "Nifty ended almost flat in a volatile session after hitting record highs in the early part of the session," said Deepak Jasani, Head of Retail Research, HDFC Securities. Ajit Mishra - SVP, Research, Religare Broking Ltd said that the tone was positive in the first half, but profit-taking in heavyweights in the second half erased all the gains. In the broader market, the BSE midcap gauge climbed 0.63 per cent while smallcap index dipped 0.09 per cent. Among the indices, oil and gas declined 0.71 per cent. Commodities (0.61 per cent), power (0.49 per cent), utilities (0.37 per cent) and consumer discretionary (0.15 per cent) also dropped. Financial Services, industrials, IT, bankex, realty and services were among the gainers. Analysts said that the presence of resistance around the 23,100 level in the Nifty, along with a rise in the volatility index, India VIX, limited the upside. India VIX, which measures market volatility surged nearly 7 per cent to 23.13 points. "Nifty remained mostly volatile during the day as India awaits the final phase of the general election (on June 1)," Rupak De, Senior Technical Analyst, LKP Securities said. In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the positive territory. European markets were also quoting in the green. Wall Street ended with gains on Friday. Global oil benchmark Brent crude climbed 0.38 per cent to USD 82.44 a barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 944.83 crore on Friday, according to exchange data. On Friday, the BSE benchmark dipped 7.65 points or 0.01 per cent to settle at 75,410.39. The Nifty breached the 23,000 mark for the first time on Friday. It, however, pared all the gains and ended with a marginal decline of 10.55 points or 0.05 per cent at 22,957.10.

Sensex scales 76,000 peak, Nifty hits new high before closing lower; IndusInd, L&T, SBI biggest gainers

<ul><li>With the dollar’s sudden drop to a two-year low, <keyword id="6357549" type="UNKNOWN" weightage="20" keywordseo="Indian-IT-companies">Indian IT companies</keyword> are looking to India’s apex bank to do what it does best — resist currency appreciation.</li><li>Meanwhile Goldman Sachs expects the dip in the dollar to get twice as bad in the coming days.</li><li>Forex advisory firm’s CEO and founder Abhishek Goenka told Business Insider that the cross currency benefits can still come in, but it depends on how the Reserve Bank of India (RBI) steps in.</li></ul>Indian IT service companies like Tata Consultancy Services (<keyword id="6357150" type="ORGANIZATION" weightage="20" keywordseo="tcs">TCS</keyword>), HCL Technologies and <keyword id="6354512" type="COMPANY" weightage="20" keywordseo="Infosys">Infosys</keyword> can’t be pumped that the dollar hit a two-year low. Being exporters, when the dollar is high, it’s a boon but when it’s not, the tables can turn quickly. According to HDFC Securities, the dent is only going to get twice as bad going forward. "The trade-weighted dollar has fallen 7% from its March peak, and Goldman Sachs expects the dollar slide to reach 15% from the highs," HDFC Securities said in a report dated September 2. When the dollar moves 25 basis points, or a quarter of a percent, it could hurt these companies’ earnings per share anywhere between 1.9% and 2.3%, according to a Goldman Sachs report. The dollar exchange rate has fallen over 5% (about 500 basis points) since mid-April. TCS has the strongest immunity to fluctuations in dollar exchange rates because it has nearly $8 billion of its revenue hedged for such shocks. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">EBIT margin sensitivity to 1% change in USD/INR </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Earnings per share (EPS) FY21 expectation </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25-30 bps </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25-30 bps </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25-30 bps </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.3% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20 bps </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15-20 bps </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2% </td></tr></tbody></table>Source: Goldman Sachs report dated August 28 The sudden drop hasn’t quite hit the companies just yet — and it could be held at bay, provided the dollar can recuperate. One way of making it happen is for the Reserve Bank of India (RBI) to keep buying up dollars. Analysts believe that the factors which caused the dollar to dip may not be long term. Provided things turn around within the next six to 12 months, the drop won’t matter. “Until then it should not be a problem as IT companies do typically hedge upto those tenors,” CEO and founder of forex advisory firm IFA Global, Abhishek Goenka, told Business Insider. If the weak dollar is unable to climb back up, IT companies’ profit, revenue and other earnings in rupee terms will take a hit, according to him. “It will impact realisations,” he said. The dollar dip may not be long term Foreign exchange markets are ‘nowcasting’. Senior currency strategist at HSBC London, <a href="https://www.ft.com/content/a06115f3-c98d-4619-8c73-26e08e64a203">Dominic Bunning</a> believes that many of the factors that currency being used to explain the dollar’s weakness are unlikely to “hold sway” in the coming months. Arguments for softness in the dollar due to cyclical elements doesn’t amount to a forecast for weakness and Bunning doesn’t see any signs of it in economic data. The uncertainty caused by COVID-19 leaves estimates and forecasts unreliable. “The dollar might have been languishing for the past few months, but there is plenty of life in the old dog yet,” he wrote in the <a href="https://www.ft.com/content/a06115f3-c98d-4619-8c73-26e08e64a203">Financial Times on August 11.</a> RBI’s battle against inflation How strong the rupee will be against the dollar is in the hands of the RBI — whether or not it continues with the hands-off approach from last week allowing the rupee to appreciate or goes back to buying up more dollars will determine cross-currency headwinds. “Though USD/INR is likely to follow the theme of broad USD weakness, RBI reaction function may cause the rupee to underperform,” said Goenka. India’s banking regulator has been buying dollars to be the bucket load to ensure that the rupee’s value doesn’t slip below ₹74.50 per dollar in the last three months. However, last week, it let go of the reins and the rupee’s value appreciated to ₹ 73.50 per dollar. However, further intervention by the RBI in the coming weeks could offset any appreciation that’s already occured. SEE ALSO: <a href="https://www.businessinsider.in/india/news/pm-modi-twitter-account-hacked-heres-what-the-hacker-had-tweeted/articleshow/77902203.cms">Twitter account of PM Modi's personal website hacked — asks followers for Bitcoin and Ethereum donations</a> <a href="https://www.businessinsider.in/tech/enterprise/news/rise-in-work-from-anywhere-will-lead-to-more-outsourcing-thats-an-opportunity-for-tcs-infosys-and-hcl-tech/articleshow/77864248.cms">TCS, Infosys and HCL Tech have the most to gain from post COVID wave of outsourcing</a> <a href="https://www.businessinsider.in/tech/apps/news/india-bans-pubg-wechat-and-118-other-mobile-applications/articleshow/77890776.cms">India bans PUBG, Ludo World, and 116 other Chinese mobile applications</a>

You Searched For "wipro earnings reaction" and got 8 results

Brokerages not rattled by big 3 IT players' tepid Q2 performance

Katya Naidu

Wipro management pins hope on wider margin and new clients while revenue takes a dip

Prabhjote Gill

TCS, Infosys, HCL Tech, and Wipro have different reactions to the slowdown in banking, financial services, and insurance

Prabhjote Gill

TCS and Infosys to face least impact — Indian IT companies likely to report sharp decline in revenue during first quarter

Prabhjote Gill

Stock market closing: Markets take a cautious stance ahead of the budget

Ira Alok Puranik

Sensex climbs over 250 pts on buying in Reliance, M&M

PTI

Sensex scales 76,000 peak, Nifty hits new high before closing lower; IndusInd, L&T, SBI biggest gainers

PTI

TCS, Infosys, HCL Tech and peers may not feel the tumbling US dollar yet — but the dent could be twice as bad going forward

Prabhjote Gill