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GoodWill  Eagle’s Eyes !

Market Movers:

The  week  that has ended  was  full of  turbulence and high volatility in the Bourses making the investors quite anxious and at the same time exuberant as the investors are well aware that if the market is dull, lazy and still there is no opportunity to make money. Such hurly-burly movements in the prices of stocks only provide an opportunity for the investors , particularly the intra-day Traders to make a substantial gain if they take informed and right decisions.

If we closely observe the market movements of stocks, there are two segments which are highly volatile  and make the markets move -viz., I.T and Pharma,  in the present context.

The  top-four I.T companies viz., TCS, Infosys, Wipro and HCL Tech – reported their  results and this has greatly impacted the markets leading to a lot of turbulence in the bourses. Tata Consultancy Services Ltd (TCS) kicked off the results season with a weak set of numbers, both in terms of revenues and profit margins. Wipro Ltd followed suit with a pleasant surprise on the profit margin front, thanks to massive cost-cutting; while Infosys Ltd left the Street’s estimates far behind both on revenues and profits. What’s more, it even stuck its neck out and said revenues are likely to be either flat or grow 2% in the current financial year. HCL Technologies Ltd was the last among the top four to report Q1 results, and they have turned out to be average, especially in comparison with Infosys. Infosys shares are now 13% higher compared to its pre-covid highs.

Wipro Ltd followed suit with a pleasant surprise on the profit margin front, thanks to massive cost-cutting; while Infosys Ltd left the Street’s estimates far behind both on revenues and profits. But revenues of HCL Tech., in dollar terms dropped 7.4% sequentially in the June quarter, even higher than the 7.1% drop at TCS. Infosys had reported a 2.4% decline in dollar revenue. But margins were better-than-expected.

So the take-away for this development would be to watch the  movement of  scripts like Infosys and Wipro  and take an appropriate decision to  ‘strike the iron while it is hot’ approach and get benefited in the short term. So despite the prevailing cynicism and pessimism the I.T companies and Pharma companies do drive the markets and hence provide opportunities  to invest and get attractive returns.

So discerning  investors  will do well to spot the  green spots and  make money !

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