19 November 2020
Market snapshot
Equities - India
Sensex
Nifty-50
Nifty-M 100
Equities-Global
S&P 500
Nasdaq
FTSE 100
DAX
Hang Seng
Nikkei 225
Commodities
Brent (US$/Bbl)
Gold ($/OZ)
Cu (US$/MT)
Almn (US$/MT)
Currency
USD/INR
USD/EUR
USD/JPY
YIELD (%)
10 Yrs G-Sec
10 Yrs AAA Corp
Flows (USD b)
FIIs
DIIs
Volumes (INRb)
Cash
F&O
Note: *Average
Close
44,180
12,938
18,924
Close
3,568
11,802
6,385
13,202
10,640
25,728
Close
43
1,872
7,070
1,985
Close
74.2
1.2
103.8
Close
5.9
6.6
18-Nov
0.41
-0.38
18-Nov
723
26,351
Chg .%
0.5
0.5
1.5
Chg .%
-1.2
-0.8
0.3
0.5
0.9
-1.1
Chg .%
0.9
-0.4
0.3
1.2
Chg .%
-0.4
-0.1
-0.4
1MChg
0.00
0.00
MTD
2.92
-2.54
MTD*
630
24,109
CYTD.%
7.1
6.3
10.7
CYTD.%
10.4
31.5
-15.3
-0.4
-4.7
8.8
CYTD.%
-34.9
23.4
15.0
11.4
CYTD.%
3.9
5.7
-4.4
CYTDchg
-0.7
-1.0
CYTD
6.66
6.81
CYTD*
554
17,837
Today’s top research idea
Wipro: Operational restructuring to fund investments
The key focus of Wipro’s Analyst Day was on operational changes and steps
undertaken to accelerate revenue growth. The company expects the shift to four
Strategic Market Units and two Global Business Lines to help streamline
operations and increase its focus outside of the US.
Creation of a global account executive (GAE) role would help WPRO better
address long-standing issue in client mining and retention.
We are less sure of the utility of delineating clients by region (unlike by industry
at peers) as this could impact its ability to tap into global accounts and
seamlessly utilize sectoral strength across regions.
With the new strategy operationalizing from Jan’21, any near-term impact would
be closely monitored and could impact the stock’s valuation.
Research covered
Cos/Sector
Wipro
SBI Life
Gujarat State
Petronet
Textile
Key Highlights
Operational restructuring to fund investments
Protection trends remain robust; cost leadership continues
A decade old – A decade new: a huge opportunity
Earnings visibility improves across players
Chart of the Day: Wipro (Operational restructuring to fund investments)
Simplified operating model of the company
Source: Company, MOFSL
Research Team (Gautam.Duggad@MotilalOswal.com)
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Investors are advised to refer through important disclosures made at the last page of the Research Report.