Why a stockbroker is bullish on Reliance Industries and Infosys
Indian stocks are off to a good start in the first half of the year, but brokerage firm Kotak Securities remains upbeat on two stocks..
Reliance IndustriesShrikant Chouhan, executive vice president and head of equity research at Kotak Securities, said the energy and telecommunications group has made many small acquisitions and is “very active” in transitions. transform companies into digital businesses.
“Telecommunications and digital will contribute a lot in the near future,” he told CNBC’s “Asian street signs” on Monday, adding that the company is taking steps in the right direction.
“We are expecting the stock to head towards at least 2,850 or 3,000 [rupee] in the next few weeks,” he said.
That represents a gain of up to 20% from Reliance Industries’ share price of Rs 2,492.65 at Monday’s close.
“Overall, we have a view that Reliance Industries will do well,” Chouhan said.
The company’s shares have risen about 5% since the start of the year. Of India Nifty stat 50 and S&P BSE Sensex are both down nearly 9% year-on-year.
Kotak Securities also like Infosyshas fallen by more than 20% since the beginning of 2022.
Chouhan said the IT company is “doing a great job in fulfilling orders” from customers for its services.
Revenue from contracts with their customers is declining, but the company will be supported by growth in the platforms it develops, he said.
IT companies have come under a lot of pressure, Chouhan said, but Infosys is trying to recover.
“We assume they’ll be fine because they’re professional and they’ve seen these cycles many times in the past,” he added.
Disclosure: Kotak Securities has a financial interest in Infosys.