At 10:20 am, the Nifty IT index -- the top gainer among sectoral indices -- was up 2.4 per cent, as compared to 0.37 per cent rise in the Nifty50 index. The IT index hit an intra-day high of 26,758 points, quoting close to its record high of 27,177 points, touched on January 14, 2021.
Wipro, Mindtree, Mphasis and Coforge from the Nifty IT index were up in the range of 3 per cent to 5 per cent, while TCS, Larsen & Toubro Infotech, Tech Mahindra, Infosys and HCL Technologies gained between 1 per cent and 2 per cent on the NSE.
Most of the frontline IT companies had reported better-than-expected Q3FY21 results and also revised their revenue/margins guidance upwards for FY21.
Among the non-index stocks, Tata Elxsi hit a new high of Rs 2,825, up 6 per cent in intra-day trade today, ralliying 21 per cent in the past three trading days. In the past one month, the company's share price has zoomed 81 per cent, against 6 per cent gain in the Nifty50 index.
In the past six months, Tata Elxsi has seen its market value zoom by 205 per cent, after foreign portfolio investors (FPIs) increased their stake in the company for the second consecutive quarters. In the past two quarters, FPIs have increased their stake in the company by 2.08 percentage points.
According to the Q3FY21 shareholding pattern filed by Tata Elxsi, FPIs have increased their holding in the company by 0.87 per cent to 12.62 per cent in December 2020 quarter (Q3FY21) from 11.75 per cent at the end of September 2020 quarter (Q2FY21). FPIs held 10.54 per cent stake in Tata Elxsi as on June 30, 2020 (Q1FY20), shareholding pattern data shows. They bought an additional 1.30 million equity shares of the company between July and December 2020.
TCS, too, hit a new high of Rs 3,328, was up 2 per cent in intra-day trade today. In the eight trading session since January 11, the stock gained 10 per cent after the company reported a healthy set of numbers for Q3FY21. Management remains confident of delivering double-digit revenue growth in FY22 on the back of strong deal intakes, broad-based growth momentum and strengthening investments in technology in H2CY20.
Analysts at Emkay Global Financial Services believe that TCS is well poised to benefits from acceleration in cloud adoptions and digital transformation opportunities, considering its end-to-end capabilities. However, valuations are rich, it said.
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