LIC IPO opens on May 4. Should you subscribe? What brokerages suggest

 While LIC policyholders are entitled to Rs 60 discount over the issue price, the retail investors will be offered the issue at a discount of Rs 45 per equity share

The Rs 21,000 crore initial public offer (IPO) of Life Insurance Corporation of India LIC IPO Date will open for subscription on May 4. Ahead of the IPO, the public sector insurance behemoth has raised Rs 5,627 crore from anchor investors, allotting around 59.3 million shares to 123 investors at Rs 949 per share.

While LIC policyholders are entitled to Rs 60 discount over the issue price, the retail investors will be offered the issue at a discount of Rs 45 per equity share. The minimum bid lot is 15 shares and in multiples of 15 equity shares thereafter. So, should you invest in India’s largest public offer till date? Here’s what brokerages suggest.

Angel One

Valuations factor in most of the negatives. Expected improvements in product mix and greater transfer of surplus to shareholders account over the coming years are expected to drive profits from current low levels, which along with cheap valuations provide comfort. Moreover, the discount of Rs 45 and Rs 60 for retail investors and LIC policyholders makes the issue more attractive for them. Hence, we are assigning a subscribe recommendation.

Reliance Industries becomes 1st Indian company to hit Rs 19-trillion m-cap

 According to the BSE data, RIL m-cap stood at Rs 19.02 trillion at 09:33 AM, with the stock up 1.3 per cent at Rs 2,811.85.

Mukesh Ambani-led Reliance Industries Ltd‘s (RIL) became the first Indian listed company to touch the Rs 19-trillion market capitalisation-mark after its shares scaled a record high. The stock hit a new high of Rs 2,827.10, up 2 per cent on the BSE in Wednesday’s intra-day trade in an otherwise weak market.

According to the BSE data, RIL m-cap stood at Rs 19.02 trillion at 09:33 AM, with the stock up 1.3 per cent at Rs 2,811.85. In comparison, the S&P BSE Sensex was down 0.61 per cent at 56,977. In the past seven trading days, the stock price of RIL has appreciated by 11 per cent from a level of Rs 2,544 on April 18, 2022. In the past three months, the stock has rallied 20 per cent, as compared to 0.42 per cent decline in the S&P BSE Sensex.

“Reliance industries is firing on all cylinders because its petchem business is doing extremely well on the back of a surge in Oil and Gas prices where Singapore gross refining margin (GRM) is at an all-time high. Its telecom business is unaffected by geopolitical tension and inflation whereas it is exploring synergies in its retail business. It is continuously expanding its path in the renewable energy business that opening more opportunities for the company,” said Santosh Meena, Head of Research, Swastika Investmart.

Adani Power m-cap hits Rs 1 trn-mark; AWL becomes 50th most-valued firm

 With Rs 1.05 trillion, Adani Power is the sixth Adani Group company which has touched the Rs 1-trillion m-cap milestone

Adani Power joined the elite group of companies with market capitalisation (m-cap) of Rs 1 trillion after the stock of Gautam Adani-led electric utilities company hit a new high of Rs 272.15. The shares were up 5 per cent on the BSE in an otherwise a weak market on Monday.

At 01:24 PM, Adani Power stood at 49th position in overall market-cap ranking with an m-cap of Rs 1.05 trillion, BSE data shows. On Friday, Adani Power had entered the list of top-50, most valued companies, in terms of market-cap. With today’s rally, the stock has zoomed 90 per cent in the past one month as compared to 1 per cent decline in the S&P BSE Sensex.

Adani Power is the sixth Adani Group Company with a market-cap of over Rs 1 trillion. Adani Green Energy (Rs 4.42 trillion), Adani Transmission (Rs 2.93 trillion), Adani Total Gas (Rs 2.70 trillion), Adani Enterprises (Rs 2.49 trillion), Adani Ports and Special Economic Zone (Rs 1.81 trillion) are others have a market cap in excess of Rs 1 trillion each.

Angel One rallies 10%, hits all-time high on healthy Q4 results

 

Operating revenue grew a strong 16 per cent QoQ and 77 per cent YoY to Rs 410 crore, driven by a healthy performance across Broking and interest income

Shares of Angel One hit an all-time high of Rs 1,793 after they rallied 10 per cent on the BSE in Thursday's intra-day trade on a healthy set of numbers for the quarter ended March 2022 (Q4FY22).

The company, engaged in stock broking & allied services business, surpassed its previous high of Rs 1,782.15 touched on April 11, 2022. At 09:54 AM, it was 6 per cent higher at Rs 1,722, as compared to 0.71 per cent rise in the S&P BSE Sensex. In the past one year, the stock has zoomed 410 per cent, as against 20.5 per cent rally in the benchmark index.

In Q4FY22, the company's profit after tax (PAT) increased 24 per cent quarter on quarter (QoQ) and 94.6 per cent year on year (YoY) at Rs 205 crore, on healthy volume growth. Operating revenue grew a strong 16 per cent QoQ and 77 per cent YoY to Rs 410 crore, driven by a healthy performance across Broking and interest income. Growth in the Broking business was driven by the F&O segment, which saw a strong growth (up 117 per cent YoY and 21 per cent QoQ) at Rs 370 crore.

The management said Angel One experienced its best-ever quarter in Q4FY22, across its operational and financial metrics. The company had the highest gross client addition, best quarterly orders, record-high quarterly revenue and profitability, as the company surpassed the 9-million client mark.

Meanwhile, the financial year 2021-22 (FY22) has been a momentous year where India achieved numerous milestones in capital markets, most notably, highest-ever gross client addition in a year, rising retail participation leading to record high daily turnover.

7 Indian-origin persons charged in million dollar insider trading scheme

 The SEC’s complaint, filed in the Northern District of California, charges each of the defendants with violating antifraud provisions of the Securities Exchange Act.

Seven Indian-origin persons have been charged by federal authorities with insider trading in a scheme through which they made over a million dollars in illegal profits. Hari Prasad Sure, 34, Lokesh Lagudu, 31 and Chotu Prabhu Tej Pulagam, 29, are friends and worked as software engineers at Twilio, a San Francisco-based cloud computing communications company, the Securities and Exchange Commission said Monday.

The complaint said Sure tipped his close friend Dileep Kumar Reddy Kamujula, 35, who successfully traded in Twilio’s options. Lagudu similarly tipped his girlfriend Sai Nekkalapudi, 30 with whom he lived, and he also tipped his former roommate and close friend Abhishek Dharmapurikar, 33. Pulagam tipped his brother Chetan Prabhu Pulagam, 31. ..Read More

Russia dares West with attack on Ukraine, warned of 'decisive response'

 Russia launched a barrage of missile, artillery and air attacks early Thursday, triggering the worst security crisis Europe has witnessed in decades.

Russian forces attacked targets across Ukraine after President Vladimir Putin ordered an operation to “demilitarize” the country, prompting international condemnation and a U.S. threat of further “severe sanctions” on Moscow, sending markets tumbling worldwide.

Russia launched a barrage of missile, artillery and air attacks early Thursday, triggering the worst security crisis Europe has witnessed in decades. Ukraine’s Interior Ministry warning that the capital, Kyiv, was being targeted and urged citizens to go to shelters. Ukraine’s border guard said that it was being shelled from five regions, including from Crimea in the south and Belarus to the north.

In a nationally televised address ahead of the offensive, Putin said that Russia doesn’t plan to “occupy” its neighbor but said the action was necessary after the U.S. and its allies crossed Russia’s “red lines” by expanding the NATO alliance. U.S. President Joe Biden called Putin’s move “an unprovoked and unjustified attack” and said the “world will hold Russia accountable.” Commodities markets surged, with Brent oil extending gains above $100 a barrel for the first time since 2014–when Russia annexed Ukraine–while gold jumped as investors scrambled for havens….Read More

10 reasons Goldman Sachs believes the bull-run in markets will continue

Major global indices have all gained 37 per cent to 75 per cent since their respective March 2020 low

The market rally that started in March 2020 after hitting their lowest point in calendar year 2020 has more legs, believe analysts at Goldman Sachs, who do caution that there could be intermittent corrections along the way. Markets, Goldman Sachs says, are in the first phase of a new investment cycle, which it calls a ‘Hope’ phase, following a deep recession. Investors, it says, start to anticipate a recovery in this phase and is typically the strongest part of the cycle.

“That is what we have been seeing this year. The main triggers for the rebound, in our view, were a combination of slowing infection rates and extraordinary policy support. Financial conditions, which were tightening sharply in the early part of the lockdown, eased rapidly and governments implemented extraordinary fiscal support packages,” wrote London-based Peter Oppenheimer, chief global equity strategist and head of macro research at Goldman Sachs in a September 7 report.

That apart, Oppenheimer believes the economic recovery looks more durable as vaccines become more likely. “Our economists have recently made upward revisions to their economic forecasts and it is likely that analysts’ expectations will follow. Our Bear Market Indicator (GSBLBR), which was at very elevated levels in 2019, is pointing to relatively low risks of a bear market despite very high valuations,” he said.

The bear market of 2020 was sharp and short-lived like other event-driven bear markets in the past. The falls, on average, were around 30 per cent in most markets, but the speed of collapse and rebound were even faster than normal. Since March 2020 low when the most global markets hit bottom as economic activity came to a standstill following lockdowns to arrest the spread of Covid-19, markets have rebounded sharply.

RBI cuts repo rate by 40bps to 4%, sees contraction in FY21 GDP growth

Catch all the market updates here

Indian markets declined on Friday even as the Reserve Bank of India (RBI) slashed repo rate by 40 basis points (bps) to 4 per cent and maintained the stance ‘accomodative’. Consequently, reverse repo rate now stands at 3.35 per cent from 3.75 per cent earlier. Moreover, RBI Governor Shaktikanta Das said that the GDP growth in FY21 is expected to be in negative territory. READ MORE

Among headline indices, the S&P BSE Sensex slipped 290 points to around 30,630 levels and the Nifty50 index slipped below the 9,050 level. Infosys gained 2 per cent after the class action lawsuit filed against the company in the US was dismissed. Reliance Industries gained 1 per cent after the conglomerate said that KKR would invest Rs 11,367 crore into Jio Platforms for 2.32 per cent equity stake. READ MORE

The trends among Nifty sectoral indices was mixed. Nifty PSU Bank index, up 1.8 per cent, gained the most.

Results today: A total of 25 companies including Alembic Pharmaceuticals, IDFC First Bank, and UPL, are scheduled to announce their March quarter earnings later in the day.

COMMENT :: VK Vijayakumar, chief investment strategist, Geojit Financial Services

RBI, which has been proactive in recent times, has risen to the occasion by advancing the policy meet to cut policy rates by 40bp. Also, the unequivocal statement that monetary policy will continue to be accommodative till growth revives sends positive signals. The fact that the central bank has refrained from giving a GDP growth figure is a reflection of the complexity in giving projections with the present growth models. Extension of the moratorium announced earlier by another 3 months is a relief. A takeaway from the policy announcement is that the stress in the banking sector will continue..Read More

SBI Cards lists 12% below issue price of Rs 755; recovers later

At 10.09 am, SBI Cards was trading at Rs 751 after hitting a high of Rs 754 on the BSE

Markets News: Portions of SBI Cards and Payment Services (SBI Cards) recorded at Rs 661, 12.45 percent underneath its issue cost of Rs 755 on the National Stock Exchange (NSE) on Monday. On the BSE, it opened at Rs 658, 13 percent lower against issue cost. In any case, at 10:09 am, the stock was exchanging at Rs 751, in the wake of hitting a high of Rs 754 on the BSE. A joined around 26 million offers have changed hands on the counter on both the trades up until this point.

The stock saw a frail introduction because of winning economic situation as the vulnerability in regards with the impact of the coronavirus scourge kept on holding financial specialist notion under tight restraints. The benchmark lists Nifty50 and S&P BSE Sensex have declined 16.6 percent since the SBI Card beginning open offer (IPO) opened for membership on March 2, 2020. The records have failed almost 21 percent, since the Visa arm of the State Bank of India (SBI) documented Draft Red Herring Prospectus (DRHP) for its IPO with Sebi on February 26.

Practically all financiers were sure on the underlying open offer (IPO) and some had anticipated up to 60 percent upside from the IPO value scope of Rs 750-755, given its predominant situation in the Visa showcase and solid parentage, SBI Cards is very much set to profit by the rising pattern of computerized installments and online business. SBI Card’s IPO had figured out how to draw in offers worth Rs 2 trillion, despite testing economic situations. The 100-million offer contribution produced near 2.7 billion offers (multiple times). The certified institutional purchasers (QIBs) segment of the IPO was bought in multiple times, trailed by high networth individual (HNI) (multiple times) and investors (25.4 occasions)…

Market carnage: Rs 12 trillion worth of investor wealth wiped off

Trading was halted for 45 minutes in early session after the index hit its lower circuit limit

Markets News: Financial specialist riches worth almost Rs 12 trillion was cleared off in under 15 minutes of exchange opening on Friday, with benchmarks smashing more than 10 percent on mounting fears over coronavirus pandemic. The 30-share BSE Sensex dove 3,380.59 focuses, or 10.31 percent, to 29,397.55. It hit an intra-day low of 29,388.97, falling up to 3,389.17 focuses.

Exchanging was stopped for 45 minutes in early meeting after the record hit its lower circuit limit. The BSE and NSE benchmark files, be that as it may, pared most misfortunes with the Sensex exchanging 835.40 focuses, or 2.55 percent, lower at 31,942.74, and the Nifty was down 253.25 focuses or 2.64 percent at 9,336.90 at 1040 hours.The disorder on Dalal Street dissolved speculator riches worth Rs 12,92,479.88 crore, taking the complete m-top to Rs 1,12,78,172.75 crore on the BSE at 1020 hours. The m-top of BSE-recorded organizations remained at Rs 1,25,70,652.63 crore toward the finish of exchanging on Thursday. Dealers said other than worldwide selloff, unremitting remote store outpourings likewise burdened speculator estimations.

On a net premise, outside institutional speculators sold values worth Rs 3,475.29 crore on Thursday, information accessible with stock trades appeared. On the BSE, 1,279 scrips declined, while 193 progressed and 40 stayed unaltered. Unpredictability elevated in worldwide markets as benchmarks world over went into alarm mode, suggesting a stunning selloff. Bourses in Shanghai dropped over 3.32 percent, Hong Kong 5.61 percent, Seoul 7.58 percent and Tokyo laughed hysterically to 7.97 percent…

YES Bank rescue plan: How brokerages have interpreted the proposals

Macquarie has suggested that taxpayers will the biggest casualty in the government-approved bailout plan for YES Bank

State Bank of India (SBI) chairman Rajnish Kumar on Saturday sought to allay concerns regarding the proposed rescue plan for YES Bank, which involves the state-owned bank picking up a 49 per cent stake in the latter, subject to conditions. The proposed plan saw stocks of YES Bank and SBI take a hit in trade on Friday, with leading brokerages such as Macquarie suggesting taxpayers will the biggest casualty in the government-approved bailout plan. JP Morgan, on the other hand, has revised down the target price of YES Bank stock to Rs 1.

Here’s how leading brokerages have interpreted the proposals and its likely impact on YES Bank, SBI and the baking sector.

Macquarie: The fact that government is considering such a bail out proposal clearly shows the risk inherent in investing in PSU banks/companies who continue to be subjected to the vagaries and compulsions of the government. The bigger casualty is taxpayers as their money is being used to infuse capital in PSU banks time and again. In other words, it is the taxpayers who are bailing out YES Bank indirectly in our view.

One buys a bank for its liabilities franchise and not for its assets. We are unsure of YES Bank’s quality of liabilities franchise, which perhaps could have further got affected due to the current solvency issues. Consolidation would have brought about a lot of integration challenges as well as legal challenges as we believe SBI Act needs to be amended for SBI to acquire a private sector bank. Even in this case, the deal will require blessings of the regulator as well as the Government. READ MORE HERE

JP Morgan: The quasi sovereign bailout (by SBI/LIC) is in fact bond holder / depositor – led bailout and not an equity one. In sum, we think the bank will need to be recapitalised at nominal equity value and could test dilution of AT1s. We remain underweight and cut our target price to Rs 1 as we believe net worth is largely impaired…

AGR verdict: Data could be the new Onion, Mr Ravi Shankar Prasad

The need of the hour could be to let Vodafone-Idea continue with the business providing them an extended rope to make the payments over a period of time, than to kill the “goose”

Economy News: The Hon. Preeminent Court on Friday rapped the telecom administrators and requested them to pay the balanced gross income (AGR) contribution by the stroke of 12 PM on Friday. This is likened to an “Execution order” for Vodafone-Idea. The legitimate framework needs to observe the standard book and is bound by law. In any case, it’s the official which needs to “think and react quickly” and make sense of the best answer for this circumstance from a comprehensive perspective, versus nailing a “guilty party”.

Everyone’s eyes would be on the Telecom Minister, Mr. Ravi Shankar Prasad, who should think “out-of-the-container” than take the simple way of toeing the Hon. Court’s order. Before closing Vodafone-Idea, the Telecom Minister should make sense of how to recuperate AGR duty from the cadavers of telecom division, viz. Dependence Communication (RCom), Aircel, Telenor, Sistema and Videocon. Not every person accompanies a rich family like the Tatas, who are satisfying off obligations of Tata Teleservices through the parent Tata Sons.

Presently, here is the thing that would occur if Vodafone-Idea were to close shop:

– Non-recuperation of contribution: It will invalidate the very point of AGR, transforming this imbroglio into a since a long time ago drawn procedure with no lucidity on conclusion.

– Job misfortunes: About 14,000 representatives, alongside various other people who are legitimately reliant on Vodafone-Idea as easygoing specialists, sellers, specialist organizations and so forth will endure.

– Non-performing resources (NPAs): Nearly Rs 1.15 trillion could turn NPA. This could be another IL&FS-type occasion. In contrast to different NPAs, the purported “resources” of a telecom organization can vanish in slim air the day it closes down. Moreover, who might bear the duty taking care of home advances, individual advances and so forth of the workers?..

YES Bank: World’s worst-performing bank stock posts globe’s biggest surge

Its shares have rallied about 50 per cent — the biggest gain among global peers valued at more than $1 billion — after embattled founder Rana Kapoor was forced to sell his holdings in October

India’s Yes Bank Ltd., the world’s worst-performing lender in 2019, has posted the globe’s biggest gain over the past month.

Its shares have rallied about 50 per cent — the biggest gain among global peers valued at more than $1 billion — after embattled founder Rana Kapoor was forced to sell his holdings in October and a new management team promised fresh capital and lower bad loans. The surge helped pare the annual loss in the Mumbai-based lender’s shares to 63 per cent. Yes Bank rose about 3 per cent as of 9:48 a.m. in Mumbai on Monday, while the main equity index was little changed.

The recovery will be a relief for new Chief Executive Officer Ravneet Gill, who’s been courting investors to revive the bank. India’s billionaire investor Rakesh Jhunjhunwala this month bought shares of Yes Bank, after the lender announced a binding offer from an unidentified global investor to inject $1.2 billion. Gill is rushing to raise funds. Latest results released this month show Yes Bank swung to a loss in the September quarter and its bad-loan ratio rose.“Capital is of utmost importance to the bank and we want the money to be in the bank by December,” Gill told reporters after the results. “Once we get the capital it will run us for 24 months.”

Sebi bans Gautam Thapar, three others from markets over CG Power fraud

Sebi restrained three entities belonging to Thapar-led Avantha Group from diverting their money or disposing of their assets

The Securities and Exchange Board of India (Sebi) on Tuesday debarred Gautam Thapar, the ousted chairman of fraud-hit CG Power and Industrial Solutions, from accessing the capital market for a number of alleged irregularities, including diversion of money.

The market regulator also barred the chief financial officer (CFO) and two directors of the company for their involvement in dubious transactions. Further, Sebi restrained three entities belonging to Gautam Thapar-led Avantha Group from diverting their money or disposing of their assets. It has also directed CG Power to take necessary steps to recover the amount due to it and take legal action to safeguard the interests of investors.

The Sebi order comes nearly a month after the CG Power board said the company had been hit by an accounting scandal and the liabilities of the group had been understated by over Rs 1,600 crore for 2017-18. Sebi said Thapar-promoted and -related entities owed Rs 1,723.19 crore as receivables to the company, while connected parties owed another Rs 462.74 crore…

Brokerages bullish on RIL post Aramco deal buzz, Jio’s commercial launch

The announcements saw the stock rally over 8 per cent in intra-day trade on the National Stock Exchange (NSE) to Rs 1,257 levels on Tuesday

From a possible deal with Saudi Aramco for a 20 per cent stake in the company’s oil-to-chemicals (O2C) business segment and the commercial launch of Jio GigaFiber on September 5, the slew of announcements made by Reliance Industries’ chairman Mukesh Ambani in its 42nd annual general meeting (AGM) on Monday have been taken positively by brokerages, who now maintain a ‘buy’ rating on the stock from a 12-month perspective.

The announcements saw the stock rally over 8 per cent in intra-day trade on the National Stock Exchange (NSE) to Rs 1,257 levels on Tuesday.

Here’s how leading brokerages have interpreted the statements:

JEFFERIES

We like this clear intent to lighten the balance-sheet even if the central plank for now is Aramco picking up a non-voting instrument that will give it a 20 per cent economic interest in its refining & petrochem (O2C) business. In return, Aramco will also get a board seat at Reliance and has also assured 0.5mbpd of oil supplies at market prices. For Reliance, though, this complex structure prevents a ring-fencing of O2C cashflow until it is transferred to an SPV in about five year…

A widening financial toll for Boeing from fallout of 737 Max grounding

Since the March 10 crash of an Ethiopian Airlines 737 Max 8 jet, Boeing has dropped 15%

International News: Boeing Co intends to report a $4.9 billion bookkeeping accuse of its second-quarter results one week from now, an indication of the augmenting money related toll from the organization’s ambushed 737 Max jetliner.

The after-charge writedown, proportional to $8.74 an offer, covers potential concessions and contemplations for carrier clients who have been compelled to drop flights and line up substitution air ship as the Max’s establishing enters its fifth month, Boeing said in an announcement Thursday. The costs will cut $5.6 billion from income and pretax profit in the quarter.

The suspicions behind the bookkeeping charge additionally gave a look at Boeing’s recuperation plan for its top rated fly, which smashed twice in a five-month range and immersed the US planemaker in one of the most noticeably terrible emergencies of its century-long history. The organization assessed that the Max will be endorsed to come back to support in the US and different nations starting “right off the bat in the final quarter,” facilitating fears that the timetable would slip to 2020.

“This is a vital crossroads for Boeing,” Chief Executive Officer Dennis Muilenburg said in the announcement. “Nothing is more imperative to us than the security of the flight teams and travelers who fly on our planes. The Max establishing presents noteworthy headwinds and the monetary effect perceived this quarter mirrors the present difficulties and addresses future budgetary dangers…

Read More: Boeing 737 Max

A $677 billion fund manager spots buy opportunity amid India sell-off

Aberdeen Standard Investments Ltd manages $676.8 billion as of end-March, globally

Unflinching by a financial exchange auction that cleaned $34 billion from India’s benchmark value record and unabating nerves in the country’s credit showcase, Aberdeen Standard Investments Ltd is hoping to adding to its India value possessions.

Momentary unpredictability is “a chance to assemble positions in quality organizations whose offer costs have been aimlessly hauled down,” said Kristy Fong, Asian value speculation executive at the benefit administrator. “We support those with evaluating power, well-put to ride on India’s long haul utilization pattern.”

An expense proposed recently on India’s super-rich, which numerous abroad financial specialists may battle to evade, set off the most honed week after week misfortune in the benchmark value record since mid May. Outside stock speculators are on track to make their greatest month to month withdrawal of 2019. The droop in values additionally frayed the nerves of speculators frightened by a string of yearlong defaults in the country’s acknowledge markets that begun for IL&FS Group in June a year ago.

“We are as yet observing some blow-ups among non-banking money related organizations, which features liquidity concerns. We think those that are battling are of unremarkable quality and will see a shake-out,” Fong said. Aberdeen oversees $676.8 billion as of end-March, all inclusive.

Here are the extracts from the meeting:

“In the close term, we can expect extra rate slices to give the economy a lift. Over the long haul, the basic positives of a youthful populace and extending white collar class support the nation’s development prospects. Improved financial stores guarantee the economy is better situated to withstand outside cash and loan cost dangers. ” “In itself, India is a speculation opportunity since its residential market is so tremendous, making it less fare subordinate than many developing business sector peers.”

“Government spending duties in zones, for example, framework, just as rising reasonableness from value cuts instigated by the Goods and Services Tax, lift the prospects for residential utilization. This should drive organization gainfulness.”

Infosys vs TCS: Which stock is a better bet at the current levels?

Post the results, most brokerages have revised their price targets for both these stocks.

Infosys and Tata Consultancy Services announced their respective June quarter results for the financial year 2019 – 20 (Q1FY20) last week. While Infosys registered 5.26 per cent rise in its Q1FY20 net profit at Rs 3,802 crore, TCS saw an uptick of 10.74 per cent in its profit after tax (PAT) to Rs 8,153 crore.

An uptick in demand for its digital services, apart from a momentum in the large deal space, prompted the Infosys to raise its FY20 revenue guidance to 8.5-10 per cent from 7.5-9.5 per cent as guided earlier. The company now plans to return 85 per cent of the free cash flows (FCF) in the form of buybacks or dividends on a five-year cumulative basis (70 per cent earlier).

Post the results, most brokerages have revised their price targets for both these stocks. For TCS, The number of ‘buy’ ratings for the stock has reduced from 27 to 23, while ‘sell’ calls have increased from 7 to 9. The average 12-month price target has also seen a slight reduction On Monday, Infosys reacted to the Q1FY20 results announced post market hours on Friday, with the stock rising over 4 per cent to Rs 758 levels.

Here’s how brokerages have interpreted Infosys‘ results:

Nomura

We believe increased FY20F revenue growth guidance, strong deal win momentum and improved capital allocation policy are positive. Our target price of Rs 680 is based on 16.5x FY21F EPS of Rs 41.4. The stock is trading at around 17x FY21F EPS on consensus estimates. We prefer HCL Technologies in the IT services space. Material margin improvement and an improvement in the growth trajectory in BFSI/retail are key risks to our thesis.

Jefferies

Management indicated broad-based demand across verticals & geographies, helped by digital adoption and large transformation projects. In BFSI, challenges in select US banks due to M&A and in capital markets across Europe & US are being offset by strength in other segments, such as retail banking and cards & payments. European manufacturing and healthcare are relative weak spots. High attrition in Q1FY20 was partly attributed to seasonality and involuntary attrition.

Best day in a decade: Markets salute exit polls verdict, hit record highs

Investor sentiment was buoyed by exit polls predicting that the BJP, with the help of its coalition partners, will comfortably reach the majority mark

Market News: The benchmark Sensex and Nifty hit new unequaled high on Monday after leave surveys demonstrated the decision Narendra Modi-drove Bharatiya Janata Party (BJP) was set to win a second term in the general races finished up on Sunday.

The Sensex climbed 3.75 percent, or 1,422, to finish at 39,353, while the Nifty50 file vaulted 421, or 3.7 percent, to close at 11,828. Both files outperformed their past record highs addressed April 16. This is the greatest one-day gain in 10 years in point terms and the most since September 2013 in rate terms.

Financial specialist assessment was floated by leave surveys anticipating that the BJP, with the assistance of its alliance accomplices, will easily achieve the dominant part mark, mollifying market fears that an adjustment in routine at the Center would crash monetary changes.

The benchmark lists had declined 6 percent subsequent to hitting an unsurpassed high a month ago, incompletely because of fears that the Congress-drove resurgent Opposition would make it trying for the Modi government to hold control in the wake of agrarian trouble and rising joblessness.

“The leave survey result is a major estimation promoter. We anticipate that the rally should proceed till the last outcomes are out (May 23). Markets could broaden the additions significantly further if the last outcome reflects the leave survey projections,” said A Balasubramanian, CEO, Aditya Birla Sun Life Mutual Fund.

In the previous three sessions, the Sensex has increased 2,238 points, or 6 percent, deleting all misfortunes for the month. Mahesh Nandurkar, India strategist, CLSA India, said that a solid command for the Modi government implies worries on populist steps, for example, money exchanges and homestead credit waivers will presumably decay…

Before you file your tax return, note the key changes in Form 16

Part B of Form 16 has been amended seeking more details about the allowances exempt under section 10 such as HRA, LTA, etc and deductions allowed under Chapter VI-A of the Income Tax Act, 1961.

Form 16 is the annual salary TDS certificate issued by an employer to an employee. The Central Board of Direct Taxes (CBDT) has notified amendments in Form 16. The new Form 16 is made effective from 12 May 2019. Employers issuing Form 16 for the financial year 2018-19 will have to issue them in the new format.

Part B of Form 16 has been amended seeking more details about the allowances exempt under section 10 such as HRA, LTA, gratuity etc and deductions allowed under Chapter VI-A of the Income Tax Act, 1961 i.e. section 80 deductions. The important changes are discussed below:

Exemptions under section 10:

Presently, an employer has the option to mention the nature of the allowances exempt under section 10 with the respective amounts. While some employers provided complete disclosure, others aggregated the allowances and disclosed the net amount exempt under section 10. ..(Read More)

Deductions under Chapter VI-A:

Presently, employers have the option to present the details of deductions under section 80C to section 80U of the Act. Similar to the disclosure of exempt allowances, some employers provided complete disclosure of the deductions, and others aggregated the allowances and disclosed the total amount of deductions allowed as a single line item in Form 16..(Read More)