The News International Team
09:45am CLSA on Bharti Infratel: Brokerage house CLSA has retained its buy rating on Bharti Infratel with a price target of Rs 450.
“Infratel’s EV/Ebitda discount to global peers has reduced from 67 percent in 2013 to 35 percent now, on the same lines as its RoE (Return on Equity) discount. Given the higher growth and operating leverage in the business, we expect Infratel’s RoE to double by FY18 to 18% which could reduce the EV/Ebitda discount further,” says the CLSA note to clients.
“Infratel had a consolidated net cash balance of Rs 3900 crore at the end of 3QFY15, and is generating free cashflow of Rs 2000-4000 crore annually. With the build-up of cash, management has stated its intent to further return excess cash to shareholders within the legal framework which could include a special dividend or share buyback,” says the CLSA note
09:30am Wipro in News: The country’s third largest IT exporter has reshuffled its top management in BFSI business that will be split between 2 leaders.
Wipro’s new BFSI heads will report to global head of BFSI, Shaji Farooq while Angan Guha will head Wipro’s North America, Australia, India, ME & EM business.
Angan Arun Guha currently heads Citigroup business unit at Wipro. Shailendra Singh will oversee Wipro’s Rest Of The World operations. Shailendra currently heads South Africa division of Wipro.
Reshuffle came after erstwhile head Rajan Kohli was moved to digital business.
Wipro told CNBC-TV18 that the company will align its BFSI unit along geographical lines. “Reshuffle will be effective from April 1 and will further improve competitiveness. It will better serve the needs of global client footprint,” it said.
09:15am Market Check:
The market rebounded sharply on Monday, tracking positive global cues. The Sensex rallied 197.15 points or 0.72 percent to 27655.79 and the Nifty reclaimed 8400, up 60.80 points or 0.73 percent at 8402.20. About 474 shares have advanced, 71 shares declined, and 88 shares are unchanged on the BSE.
Wipro, HDFC, Sesa Sterlite, M&M, Bharti Airtel, ITC, BPCL, Idea Cellular and Asian Paints rallied 1-1.5 percent.
The Indian rupee opened lower by 15 paise at 62.56 per dollar on Monday against Friday’s closing value of 62.41 a dollar.
The dollar holds steady after the head of the US Central Bank assured investors that the path back to ‘normal’ interest rates will only occur at a gradual pace.
Agam Gupta of Standard Chartered said, “Expect year-end dollar inflows to continue in this shortened week.”
He further added, “Exporters will continue to sell on upticks to levels of 62.65-62.70 and local government banks will mop up dollars on any downticks to 62.35-62.40/dollar. Expect it to be a rangebound day with good two way interest.”
Among global markets, in the US, stocks closed mildly higher as investors digested Fed Chair Janet Yellen’s remarks remained cautious ahead of first quarter earnings in April. Yellen said a rate increase may be warranted later this year, adding that an increase in core inflation is not essential before the fed raises rates.
The third estimate for Q4 US GDP came in unchanged at 2.2 percent. While corporate profits fell, consumer spending was revised higher to 4.4 percent from 4.2 percent, the fastest rate since the first quarter of 2006.
And in Asia, shares opened with a positive bias. Softer than expected factory output from Japan hurt sentiment, February industrial production fell 3.4 percent month-on-month, biggest drop since June 2014.
Among commodities, oil prices slipped as Iran and six world powers tried to reach a deal that could add oil to the market if sanctions against Tehran are lifted.
From precious metals space, gold snapped its rally to slip below USD 1200 an ounce as dollar steadies.