The Nifty IT index reversed it early morning losses to hit another high on Wednesday trade. The index is trading above 33000 levels and it has added 6.64% in three days.
Shares of
Infosys hit a new record high of Rs1,755 on the NSE in intra-day trade. The stock was trading at Rs1,751.75, above its maximum share buyback price of Rs1,750 per share. The IT company had commenced share buyback programme worth Rs9,200cr on June 25, 2021, wherein it had proposed to buy back shares at a maximum price of Rs1,750 apiece.
The Nifty IT was trading at 33,557.65 up by 142 points or 0.43%. The index opened at 33,482.85 and touched a high of 33,840.45.
Mindtree was among the top gainers and surged over 5%, Coforge also climbed 3%,
Mphasis jumped 3% whereas LTI gained 1% and TCS was also in the green zone.
Tata Group-backed, Tata Consultancy Services (TCS) market capitalisation on Tuesday crossed over the Rs13 lakh cr mark. The stock has touched a new all-time high of Rs3530 per piece.
Morgan Stanley in its report has recommended staying in midcap IT stocks as it expects the revenue beat cycle to continue in these companies.
"With continuing supply-side challenges impacting margins and strong outperformance in the recent past, we see risk-reward for midcaps becoming less favourable relative to large caps," said Morgan Stanley reported by the Economic Times.
Brokerage firm Stanley said in the report that it is are underweight stocks where earnings per share upgrades are unlikely and a lack of positive surprises on revenue/deal wins could drive valuation multiples further. Stanley has raised the target on Mindtree and Mphasis, while downgraded its target on L&T Infotech and Cyient.
On the flip side, OFSS and
Wipro declined 0.5% each, HCL Tech,
Tech Mahindra and
Infosys stock declined in the IT index.
Meanwhile, benchmark indices traded near the record high level with decent gains in morning trade. The Nifty hovered near the 16,700 mark up 60 points. The Sensex jumped over 200 points at 56,013.51 levels.