New Delhi, July 21 (SocialNews.XYZ) IT heavyweights led by Infosys, HUL and Reliance Industries dragged the Sensex down to a sharp fall of more than 1,000 points on Friday.
Infosys is down more than 8 per cent, HUL is down 3.8 per and Reliance is down more than 3 per cent.
IT majors, HCL Tech is down 4 per cent while Wipro is down more than 3 per cent.
Weak Q1 results by Infosys and Hindustan Unilever are weighing on Indian indices.
HUL's revenue growth of 6 per cent YoY was below our expectations, HDFC Securities said in a report. HUL is down 3 per cent in trade on Friday.
Domestic volume growth, at 3 per cent, was below our estimate. We note volume growth was impacted as trade reduced stock levels (1-3 days) in lieu of price cuts. In home care, fabric wash grew in double digits, led by the premium portfolio while household care too grew in double digits (volume-led), driven by outperformance in dishwash, the report said.
Further price reduction taken in soaps. Hair care registered mid-single digit volume-led growth, while skincare/oral care grew in double digits.
On Infosys, Motilal Oswal Financial Services said the FY24 guidance reset will impact near-term stock view. Infosys reported 1QFY24 revenue at USD4.62b, up 1.0 per cent QoQ in CC terms with 20 bps QoQ decline in operating margin. While on a negative surprise, the company has sharply lowered its FY24 revenue growth guidance to 1.0-3.5 per cent YoY CC from 4.0-7.0 per cent YoY CC earlier.
The substantial cut in the guidance is majorly attributed to lower-than-expected volume and discretionary spends, delays in decision-making and push-outs in anticipated mega deals, the report said.
"We lower our below-guidance FY24 estimates (earlier at 3.8 per cent YoY CC) by 120bp despite the 325bp cut in guidance at the mid-point, to take into account the weaker demand commentary and project delays," the report said.
Source: IANS
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz
This website uses cookies.
