Stocks To Watch: TCS, HCLTech, Mahindra & Mahindra, Vodafone Idea

Shares of TCS, HCL Tech, Mahindra & Mahindra and Prestige Estates will be in focus on Friday.

Tata Consultancy Services Ltd. on Thursday reaffirmed its commitment to achieving a margin above 26%, despite experiencing its first contraction in four quarters during the April-June period, coinciding with a company-wide salary increase.

Prestige Estates Projects Ltd. recorded a 22.6% year-on-year dip in sales at Rs 3,030 crore in the first quarter of this fiscal due to a lag in approvals and project launches amid the election season. The total sales volume during the quarter also fell to 2.86 million sq ft.

Adani Wilmar Ltd. has agreed to acquire a majority stake in specialty chemical maker Omkar Chemical Industries Pvt. on Thursday as it seeks to boost its presence in the sector.

The GIFT Nifty was trading 13 points or 0.05% higher at 24,471.00 as of 7:29 a.m.

Indian benchmarks opened positively but relinquished all gains within the first hours of trading on Thursday. However, they recovered all losses during the second half of the session, ultimately closing nearly unchanged.

The NSE Nifty 50 settled at 8.50 points or 0.04%, lower at 24,315.95, and the S&P BSE Sensex closed at 27.43 points or 0.03%, lower at 79,897.34.

Analysts expect the Nifty index to be range-bound on Friday with a resistance level of 24,460. If the index holds above these levels, then they could see an extended rally. However, if it falls, then 24,170 and 24,000 will act as good support levels.

Markets are also expected to react to U.S. inflation data that was released after trading hours on Wednesday. Nifty's fall below the support level could also trigger a price correction that could be "healthy" for the market ahead of earnings, analysts said.

Analysts also expect the Nifty Bank index to rise from its current levels. 51,750 will act as a support level for the index and if that stays intact, then the Nifty Bank index will witness an up move again from the current levels.

• TCS: The company reported consolidated net profit of Rs 12,105 crore against a Bloomberg estimate of Rs 11,959 crore. Revenue rose 2.2% sequentially to Rs 62,613 crore in the three months ending June. Bloomberg analysts had projected Rs 62,128.4 crore. India's largest software services provider reported an EBIT margin of 24.7% for the first quarter of the financial year, down from 26% in the previous quarter, according to its stock exchange notification. Analysts tracked by Bloomberg had estimated a margin of 24.5%.

• HCL Technologies: The technology giant is set to announce its earnings on Friday. Bloomberg estimates the net profit to be Rs 3,846.1 crore and the revenue at Rs 28,028 crore. EBIT is estimated at Rs 4,806.4 crore, while the EBIT margin is estimated at 17%.

• Mahindra & Mahindra: The auto company's total production in the first quarter of this fiscal was 69,045 units, up 8% year-on-year and total sales were up 11% at 66,800 units. The total exports were up 4% to 2,597 units for the quarter ended June. The company also reduced its stake in Switzerland's Gamaya from 15.04% to 4.33% due to a shareholding reorganisation.

• Prestige Estates Projects: The real estate firm recorded a 22.6% year-on-year dip in sales at Rs 3,030 crore in the first quarter of this fiscal due to a lag in approvals and project launches amid the election season. The total sales volume during the quarter also fell to 2.86 million sq ft. The average realisation rose 16% year-on-year to Rs 11,934 per sq. ft. for apartments, villas, and commercial spaces, and the average realisation for plots also rose 46% year-on-year to Rs 7,285 per sq. ft. The real estate firm reported a 6% jump in sales collection in the quarter ended June at Rs 2,916 crore. Prestige Estates sold 1,364 units in the first quarter.

• Adani Wilmar: The Ahmedabad-based company will acquire a 67% stake in specialty chemical company Omkar Chemical Industries at an enterprise value of Rs 56.25 crore.

• Nazara Technologies: The technology company’s unit Nodwin Singapore acquired an additional 43.5% stake in Freaks 4U Gaming for €23.45 million; Freaks 4U became a step-down subsidiary of the company.

• Vodafone Idea: Shareholders approved the issuance of preferential shares. In other news, the telecom giant received notice from ATC Telecom Infra for the conversion of OCDs worth Rs 160 crore into shares.

• Rashtriya Chemicals & Fertilisers: The chemical and fertiliser company placed a purchase order worth Rs 514 crore. The order is to revamp its ammonia plant in Thal, Maharashtra.

• Aditya Birla Fashion And Retail: The fashion company raised its stake in Goodview Fashion to 51% from 33.5% for Rs 127 crore. Goodview Fashion manufactures and sells ethnic couture under the Tarun Tahiliani brand.

• Azad Engineering: The manufacturing company received a five-year contract from Germany's Siemens Energy Global for the supply of rotating components for Siemens' gas and thermal turbine engines.