Tech, BFSI likely to spice up results season FPIS TURN NET BUYERS OF EQUITIES IN JANUARY SO FAR

Large-cap companies expected to witness decent earnings in third quarter

Total outstanding dues owed by electricity distribution companies (discoms) to power producers rose 4.4 per cent yearon-year to Rs 1,21,030 crore in January 2022. Discoms owed a total of Rs 1,15,904 crore to power generation firms in January 2021, according to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators).

After two strong quarters of earnings growth, brokerages expect another healthy quarter of close to

20 per cent earnings growth in the upcoming earnings season that kicks off from Monday.

The key earnings driver in the third quarter of

FY2021-22 will be metals, BFSI (banking financial services and insurance), oil and gas and information technology, according to the brokerages.

The third quarter earnings season will kick off with large-cap IT companies reporting in the first week. Infosys, Wipro, TCS, and HCL Tech will announce their Q3 results on January 12 and HCL Technologies on January

14. “IT stocks have beaten the benchmark, fuelled by expectations of an increase in deals and a resultant stellar growth momentum. The sector’s major monitorables will be margin projection, revenue guidance, and attrition figures,” Yesha Shah, head of equity research, Samco Securities, said.

The Nifty IT index’s return in the last one month period was 6.1 per cent compared to the

Nifty-50’s return of 2.64 per cent.

New Delhi, Jan. 9: After three months of selling spree, foreign investors have turned net buyers in the first week of January by infusing `3,202 crore in Indian equities, as corrections in markets provided them good buying opportunity.

Most large caps are expected to report decent earnings with banks reporting steady sequential decline in slippages, lower provisions, better

Going forward, FPIs flows will remain volatile on the expectation of the US Fed rate hike, rising concerns over the Omicron variant and elevated inflation levels, experts said.

The latest inflow came after witnessing a net outflow of `38,521 crore

performance of banks, said Securities.

Metals and mining is expected to report higher realisations and volumes

large Kotak during October-December 2021. Before that, foreign portfolio investors had made a net investment of `13,154 crore in September last year.

According to data available, FPIs have infused a net sum of `3,202 crore in the Indian equities during January 3-7. on a year-on-year (yoy) basis, but weaker sequentially; oil, gas and consumable fuels higher quarter on quarter and yoy realisations for upstream companies, improved marketing and refining margins for downstream companies sequentially and retailing reporting strong volume growth led by increase in footfall and operating leverage-led margin expansion, Kotak Securities said.

At the same time, automobiles are expected to report lower net income owing to production issues and raw material price rise; the same goes for construction materials due to weak demand environment, higher fuel and power costs.

Metals are likely to post 60 per cent yoy profit growth.