Chakri Lokapriya discusses earnings upgrades in infra, auto, metals. Maruti s EV models offer growth potential. TCS projects higher growth than Infosys. Wipro faces challenges with new CEO. The approach to automobiles sector is not only betting on things which do not only make products for EVs, but for both types of automobiles.
Post the earnings, brokerage Citi is overweight on PSU Utilities & Defence, Industrials, Banks/Insurance and underweight on Consumer Discretionary, IT Services, and Metals. Its December 2024 NIFTY target is 22.5k, which indicates a 2 percent upside.
The earnings for the December quarter (Q3FY24) so far have been in line with estimates for the most part. 33 Nifty stocks have reported sales, EBITDA, and PAT growth of 6 percent, 15 percent, and 21 percent YoY versus estimates of 7 percent, 14 percent, and 20 percent, respectively.
InCred Equities believes that the consolidation is likely to be sustained till December 2023, until the poll outcome in five major states is announced.
Adjusting for inflation, however, Goldman Sachs expects earnings in Europe to fall 2% this year. Cost of debt due to rising bond yields also poses a threat to profits, it said.