India’s shares did not open well in the first half of the year, but stock brokerage Kotak Securities remains bullish on two stocks,
Reliance IndustriesShrikant Chauhan, executive vice president and head of equity research, Kotak Securities, an energy and telecom conglomerate, is making a lot of small acquisitions and is “very aggressive” in converting companies to digital businesses.
“Telecommunications and digital will contribute greatly in the near future,” he told CNBC “Street Science Asia” on Monday, adding that the company is taking steps in the right direction.
“We are expecting the stock to move towards at least 2,850 or 3,000 [rupee] Next, maybe in a couple of weeks,” he said.
This represents up to 20% from Reliance Industries’ share price of Rs 2,492.65 at Monday’s close.
Chouhan said, “Broadly we believe that Reliance Industries is going to do well.
The company’s shares are up about 5% since the beginning of the year. of India nifty 50 index And both the S&P BSE Sensex are down around 9% in the same period.
Infosys
Liked by Kotak Securities InfosysWhich has fallen by more than 20% since the beginning of 2022.
Chouhan said the information technology company is “doing very well in terms of fulfilling orders” from its customers for their services.
Revenue from contracts with its customers is down, but the company is going to be supported by growth in the platforms it develops, he said.
Chouhan said IT companies have come under pressure, but Infosys is trying to recover.
“We believe they are going to be fine because they are professionals and they have seen these cycles many times in the past,” he said.
Disclosure: Kotak Securities has a financial interest in Infosys.