It is a big day for earnings, as index biggies such as Reliance Industries, Tata Consultancy Services (TCS), and HCL Technologies is going to release their third quarter numbers post-market hours on Friday.

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Sandip Agarwal, associate director at Edelweiss, has set a price target of Rs 2,104 on TCS. He said even if the number comes slightly lower then there will not be a big reaction on the stock because people are taking long-term call on the industry.

"So, there is a 40-50 basis points of benefit from the currency coming in," said Agarwal.

“We have a hold rating because the valuations are quite expensive. However, I do not think that even if the number comes slightly lower than there will be a big reaction on the stock because people are taking long-term call on the industry and they know that these spends are going to continue,” he said.

On HCL Technologies, Agarwal expects the growth momentum to continue. “We are projecting a 2.6 percent growth, which is 16 percent year-on-year (YoY) growth. I think the commentary will also be positive.”

“Recently, we have heard that in the IMS space there are a lot of deals which are getting announced. So, HCL and TCS are the natural beneficiaries of that,” he added.

Disclosure:

RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.

First Published:Jan 17, 2020 10:08 AM IST