D-Street Buzz: IT stocks rally - TCS, Wipro, Infosys hit new 52-week high; NIIT, Birlasoft, Mastek jump 6-7%

The Indian stock market is trading higher on October 5 with Sensex jumping 494.63 points or 1.28 percent at 39191.68, and the Nifty gained 138.70 points or 1.21 percent at 11555.70.

Among the sectors, the IT index jumped almost 3 percent led by Tata Consultancy Services (TCS) which was up 5 percent touching new 52-week high as company board said it will consider share buyback. The company board will meet later this week, on October 7, to consider a share buyback proposal.

"...the board of directors will consider a proposal for buyback of equity shares of the company, at its meeting to be held on October 7, 2020," the company informed the exchanges on October 4.

The other gainers included Wipro which added 4 percent followed by Infosys, Mindtree and HCL Tech.

BSE IT added 3 percent at 11:14 hours. The top gainers apart from TCS included Mastek, NIIT, Ramco Systems, Subex, Wipro, Zensar Tech, Quick Heal Technologies, Nucleus Software, Intellect Design, eClerx Services, Aptech, 63 Moons Tech, 3i Infotech and Hindustan Rectifiers.

Wipro was one of the most active stocks on NSE in terms of volumes with 1,58,17,018 shares being traded while the most active IT stocks in terms of value included TCS (64,39,005), Infosys (67,35,232), HCL Tech (68,40,049) and Wipro (1,58,17,018).

Shares of TCS, Wipro, Tata Elxsi, Infosys, Mindtree and Coforge have hit new 52-week high on BSE.

Brokerage firm JM Financial has a buy on Infosys with target price at Rs 1,200 and is the top pick among India’s Tier-I techs. "We assume coverage with a buy rating and a target price of Rs 1,200 based on 23 times December 2022E EPS. We believe that Infosys remains best-placed to lead on revenue growth, aided by renewed focus in recent years that is driving significant improvement in win rates," JM Financial said.

The brokerage firm also has a buy on HCL Tech with target price at Rs 900 and Tech Mahindra with target price at Rs 850.