Paytm, Cyient & Astral: What Gaurang Shah of Geojit Financial says on these 3 stocks

Gaurang Shah, Senior VP, Geojit Financial, on Wednesday said market may see some profit booking at higher levels. Index wise, the market expert suggested that a decisive close above Nifty's all-time high level of 22,126.80 is required for a further rise.

On the stock-specific front, Shah selected Cyient Ltd as one of his top picks for the day. "This mid-cap IT firm is outperforming its large-caps peers. One can expect target prices of Rs 2,500-2,600 after the third-quarter (Q3 FY24) earnings," he told Business Today TV. The stock was last seen trading 0.63 per cent higher at Rs 2,215.05 today.

The Hyderabad-headquartered company's consolidated net profit dropped 1.80 per cent to Rs 153.2 crore for the quarter ended December 31, 2023 as against Rs 156 crore in the year-ago period. However, consolidated revenue from operations for Cyient rose 12.50 per cent to Rs 1,821 crore for the quarter.

The other stock which the market veteran picked was Astral Ltd. "The stock may see Rs 2,200-2,300 levels. It is a proxy play on fallback of a recovery in real estate sector," Shah said. The scrip was trading 0.51 per cent up at Rs 1,896.70.

When asked about One 97 Communications Ltd (Paytm's parent) shares, the expert said, "Wait for some clarity. The stock will possibly be driven by market rumours. So, wait for the dust to settle down." The counter rebounded 10 per cent to hit Rs 496.75 today.

Paytm CEO Vijay Shekhar Sharma has reportedly met Finance Minister Nirmala Sitharaman and Reserve Bank of India (RBI) officials in the wake of restrictions on Paytm Payments Bank. The firm and its stock price were under tremendous pressure since the Reserve Bank announced restrictions on Paytm Payments' operations amid persistent non-compliances and continued material supervisory concerns.

Meanwhile, Indian equity benchmarks were trading higher today, led by gains across all sectors. Broader markets (mid- and small-cap shares) were also up.

Investors now await Reserve Bank of India's (RBI's) monetary policy outcome, due to be released on Thursday. The Reserve Bank is expected to maintain a rate pause but policymakers' commentary on economy and inflation will be keenly awaited for cues on when they will start easing rates.

All 15 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank and Nifty FMCG were outperforming the NSE platform by rising as much as 0.64 per cent and 0.69 per cent, respectively.

On the stock-specific front, HDFC Life was the top gainer in the Nifty pack as the stock soared 2.81 per cent to trade at Rs 609.4. SBI, Coal India, Axis Bank and SBI Life rose up to 2.70 per cent.

In contrast, BPCL, HCL Tech, Infosys, PowerGrid and Tech Mahindra were among the top losers on Nifty50.

The overall market breadth was positive as 1,726 shares were advancing while 404 were declining on BSE.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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