Market opens higher, HCL Tech tanks 9%
The IT company Q3 results have left brokerages unimpressed
Mumbai: The domestic benchmark indices opened higher on Tuesday even as HCL Tech’s stock tanked 9 per cent in early trade after posting Q3 results that left brokerages unimpressed.
The IT services company reported a 6% growth in consolidated net profit to Rs 4,591 crore for the quarter ended December 2024 from Rs 4,350 crore a year ago.
Brokerage firm Nuvama has downgraded HCLTech to “hold” from its earlier rating of “buy”. NSE Nifty 50 and BSE Sensex opened higher.
As of 9:16 am, the Nifty 50 was 113.60 points or 0.49 per cent higher at 23,199.55, and the Sensex was 370.21 points or 0.49 per cent higher at 76,700.22.
According to market experts, the constant refrain from many saner voices that the broader market is overpriced and may correct sharply is now playing out.
Strengthening dollar, 10-year US bond yields rising to above 4.7 per cent, uncertainty regarding Donald Trump’s actions after January 20, all have combined to cause this market correction, they noted.
The Nifty tumbled 1.5 per cent on Monday, falling for the fourth straight day and for the sixth session in seven. “Technically speaking, the 22,830-23,000 area is notable support from here, with some near-term time cycles coming together in the January 17-23 window,” said Akshay Chinchalkar, Head of Research at Axis Securities.
It appears that the market is a bit oversold and this favours a bounce back in the near-term. “But that trend, if it plays out, is unlikely to sustain. There is more pain likely in mid and small caps. The sensible option for retail investors is to buy beaten down quality large-caps and wait patiently,” said experts.
Foreign institutional investors (FIIs) sold equities worth Rs 4,892.84 crore on January 13. On the other hand, domestic institutional investors bought equities worth Rs 8,066 crore on the same day.
