Synopsis
The information technology giant is on the verge of taking over private sector banking major HDFC Bank in terms of market capitalisation. Infosys’ market capitalisation currently stands at Rs. 7.95 crore, just Rs. 15,000 crore shy of HDFC Bank’s.
AgenciesMUMBAI – In what appears to be a sign of the changing times on Dalal Street,
is closing in on a historic turn of positions in the market.
The information technology giant is on the verge of taking over private sector banking major HDFC Bank in terms of market capitalisation. Infosys’ market capitalisation currently stands at Rs. 7.95 crore, just Rs. 15,000 crore shy of HDFC Bank’s.
Given the sluggish outlook for HDFC Bank and the optimism for Infosys, betting on Infosys to take over HDFC Bank in the coming days and become the third-largest company in India would be a safe one. The feat also reflects the recent resurgence in the sway of information technology companies on the benchmark Nifty50 index, where banks still account for the biggest weight.
BEGINNING OF THE END?
Despite being only listed on the second-largest stock exchange in the country, the company has had the best 12 months in its recent history. The stock has more than doubled during the year, aided by optimism among investors for capital market-related companies in the wake of the influx of millions of new retail investors.
However, the optimism has turned into euphoria as the rally has resulted in BSE being valued at twice the valuation of its global peers, who are actually market leaders. Brokerage firm Investec believes that risk-reward on the valuation front has turned unfavourable for the company while it also sees a sequential decline in earnings ahead.
Some investors, who are wary of richly valued stocks, sold the company’s shares on concerns that Investec’s bearish report could trigger a deep selloff. The stock ended over 2 per cent lower.
GRAPHITE ELECTRODE STOCKS BUZZING
Having seen the rally in their stocks fizzle out over the past few months, graphite electrode makers were in for a jolly good time today. Shares of
and
soared 13 per cent and 20 per cent on reports that the companies have likely taken a price hike for the next quarter.
The price hike comes at a time when investors are concerned that best of price increases for graphite electrode makers was over, given the sluggishness in price movement in the previous quarter.
The enhancement in the price for Graphite India and HEG is likely to provide a leg up to these companies’ profitability, which will further help them reduce the debt on their balance sheet going ahead.
(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)
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SynopsisThe information technology giant is on the verge of taking over private sector banking major HDFC Bank in terms of market capitalisation. Infosys’ market capitalisation currently stands at Rs. 7.95 crore, just Rs. 15,000 crore shy of HDFC Bank’s.AgenciesGiven the sluggish outlook for HDFC Bank and the optimism for Infosys, betting on Infosys to take over HDFC Bank in the coming days and become the third-largest company in India would be a safe one.MUMBAI – In what appears to be a sign of the changing times on Dalal Street, is closing in on a historic turn of positions in the market. The information technology giant is on the verge of taking over private sector banking major HDFC Bank in terms of market capitalisation. Infosys’ market capitalisation currently stands at Rs. 7.95 crore, just Rs. 15,000 crore shy of HDFC Bank’s. Given the sluggish outlook for HDFC Bank and the optimism for Infosys, betting on Infosys to take over HDFC Bank in the coming days and become the third-largest company in India would be a safe one. The feat also reflects the recent resurgence in the sway of information technology companies on the benchmark Nifty50 index, where banks still account for the biggest weight. BEGINNING OF THE END? Despite being only listed on the second-largest stock exchange in the country, the company has had the best 12 months in its recent history. The stock has more than doubled during the year, aided by optimism among investors for capital market-related companies in the wake of the influx of millions of new retail investors. However, the optimism has turned into euphoria as the rally has resulted in BSE being valued at twice the valuation of its global peers, who are actually market leaders. Brokerage firm Investec believes that risk-reward on the valuation front has turned unfavourable for the company while it also sees a sequential decline in earnings ahead. Some investors, who are wary of richly valued stocks, sold the company’s shares on concerns that Investec’s bearish report could trigger a deep selloff. The stock ended over 2 per cent lower. GRAPHITE ELECTRODE STOCKS BUZZING Having seen the rally in their stocks fizzle out over the past few months, graphite electrode makers were in for a jolly good time today. Shares of and soared 13 per cent and 20 per cent on reports that the companies have likely taken a price hike for the next quarter. The price hike comes at a time when investors are concerned that best of price increases for graphite electrode makers was over, given the sluggishness in price movement in the previous quarter. The enhancement in the price for Graphite India and HEG is likely to provide a leg up to these companies’ profitability, which will further help them reduce the debt on their balance sheet going ahead. (What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.) Download The Economic Times News App to get Daily Market Updates & Live Business News….morelessPick the best stocks for yourself Powered by 4 mins read7 mins read3 mins read4 mins read7 mins read2 mins read5 mins read3 mins read