Shares of information technology (IT) companies were on a roll at the bourses after the sector major Tata Consultancy Services (TCS) announced a share buyback plan and expectation of strong earnings for the July-September quarter (Q2FY21).
TCS, Infosys, Mindtree, KPIT Technologies, Info Edge (India), Coforge, and Birla Soft hit their respective record highs on the National Stock Exchange (NSE). Besides, these stocks, NIIT, Mastek, Ramco Systems, Wipro, Aptech, and Tata Exlsi were up in the range of 4 per cent to 7 per cent.
Nifty IT index hit a record high of 20,748 in the intra-day trade and was up 2.8 per cent at 20,677 at 11:15 am. In comparison, the Nifty50 index was up 1.2 per cent.
TCS hit a record high of Rs 2,667, up 6 per cent, surpassing its previous high of Rs 2,554, touched on September 22, 2020. The Tata group's IT bellwether said it will consider a buyback on Wednesday, October 7, 2020.
Wipro, too, surged 6 per cent to Rs 330.55 in the intra-day trade today, hitting an over 20-year high on the NSE. The stock was trading at its highest level since February 22, 2000, when it hit an all-time high of Rs 388.12 in intra-day trade.
Wipro said the board of directors of the company is scheduled to meet on October 12-13, 2020 to consider the audited financial results of the company for the quarter ended September 30, 2020 (Q2FY21).
The IT companies are expected to post healthy numbers for the second quarter of the fiscal year 2020-21 owing to multiple tailwinds such as strong deal flow, traction in digital technologies, and resolution of supply-side issues as the quarter witnessed the easing of Covid-19-induced lockdowns in many countries. READ MORE
Further, encouraging management commentary by Accenture recently as well as HCL Tech’s mid-quarter upward revision in revenue and earnings before interest, and tax (EBIT) margin guidance, also point towards a strong performance by the IT companies. That apart, cost rationalisation, lower travel cost, and cross-currency benefits, according to analysts, are also expected to drive operating margins of the companies for the quarter under review.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| BIRLASOFT LTD | 207.20 | 194.50 | 6.5 |
| MASTEK | 906.00 | 855.90 | 5.9 |
| TC | 2657.00 | 2522.75 | 5.3 |
| RAMCO SYSTEMS | 469.65 | 447.30 | 5.0 |
| SUBEX | 12.46 | 11.87 | 5.0 |
| 63 MOONS TECH. | 75.20 | 71.65 | 5.0 |
| DATAMATICS GLOB. | 80.65 | 76.85 | 4.9 |
| WIPRO | 328.05 | 313.00 | 4.8 |
| 3I INFOTECH | 3.62 | 3.46 | 4.6 |
| INTELLECT DESIGN | 244.00 | 233.80 | 4.4 |
| QUICK HEAL TECH | 166.80 | 160.15 | 4.2 |
| TATA ELXSI | 1322.10 | 1274.90 | 3.7 |
| INFIBEAM AVENUES | 77.70 | 74.95 | 3.7 |
| ECLERX SERVICES | 721.00 | 697.75 | 3.3 |
| VAKRANGEE | 29.90 | 29.00 | 3.1 |
| NUCLEUS SOFT. | 693.05 | 672.65 | 3.0 |
| BRIGHTCOM GROUP | 5.39 | 5.24 | 2.9 |
| CIGNITI TECH. | 433.25 | 421.45 | 2.8 |
| AXISCADES ENGG. | 51.60 | 50.20 | 2.8 |
| INFOSY | 1043.90 | 1017.70 | 2.6 |
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