IT stocks hit 52-week highs as buying frenzy continues

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IT stocks hit 52-week highs as buying frenzy continues
Infosys: Quotes, News
BSE 964.10BSE Quote11.95 (1.24%)
NSE 964.50NSE Quote11.1 (1.15%)
HCL Technologies: Quotes, News
BSE 787.30BSE Quote14.4 (1.83%)
NSE 793.60NSE Quote9.5 (1.20%)
Frenzied buying in tech stocks saw their shares prices hitting 52-week highs as investors chased safe haven bets like IT.

Tech Mahindra, Infosys and HCL Tech hit their 52-week highs in intra day trade. Infosys hit a news 52-week high of Rs 3544.95, while HCL Tech hit a new 52-week high of Rs 1258.65, while Tech Mahindra hit a 52-week high of Rs 1783 in trade today.

Buying has gripped technology stocks as investors continue to dump other sector stocks on hopes that a sharp rebound in economic recovery in the United States would augur well for the financial performance of stocks from the sector.

A series of upgrades for these stocks from leading domestic and foreign brokerage firms has led to buying interest.

Analysts believe that these companies would post a robust set of numbers for Q3 2013-14 which makes them strong buys.

Most of the stocks, including HCL Tech have almost doubled from their lows, making them rather expensive at the current levels. But, markets seem disinterested in the sharp expansion in price to earnings multiples for these companies as they believe that results would match expectations.

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Read more about: hcl tech, tech mahindra, infosys
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