Why one stock brokerage is bullish on Reliance Industries and Infosys

India’s stocks didn’t get off to a good start in the first half of the year, but stockbroker Kotak Securities remains bullish on two stocks.

Reliance Industries, an energy and telecommunications conglomerate, has made many small acquisitions and is “very aggressive” in converting companies into digital companies, said Shrikant Chouhan, executive vice president and head of equity research at Kotak Securities.

“Telecom and digital will contribute a lot in the near future,” he told CNBC’s Street Signs Asia on Monday, adding that the company is taking steps in the right direction.

“We expect the stock to move in the direction of at least 2,850 or 3,000 [rupee] in the next, maybe a few weeks,” he said.

That represents a 20% increase from Reliance Industries’ stock price of 2,492.65 rupees at the end of Monday.

“Overall, we believe Reliance Industries is going to do well,” Chouhan said.

Shares of the company are up about 5% since the beginning of the year. India’s Nifty 50 Index and S&P BSE Sensex are both down nearly 9% over the same period.


Kotak Securities also likes Infosys, which is down more than 20% since early 2022.

Chouhan said the information technology company is “doing extremely well in fulfilling the orders” of its customers for their services.

Revenues from contracts with their customers have fallen, but the company will be supported by growth in the platforms it has developed, he said.

IT companies have come under pressure, but Infosys is trying to recover, Chouhan said.

“We believe they will do well because they are professional and they have seen these cycles many times in the past,” he added.

disclosures: Kotak Securities has a financial interest in Infosys.

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