IT Stocks Gain On US Stimulus Hope ; TCS, Infosys Close To Record Highs

Information technology (IT) stocks in intra-day trade on September 29, 2020 rallied up to 3% on media report that the US government is working to push through another stimulus package worth $2.4 trillion.

IT Stocks Gain On US Stimulus Hope ; TCS, Infosys Close To Record Highs

On the news, TCS gained as much as 3.5% to scale day's high of Rs. 2511.05 on the NSE. Infosys also traded higher by up to 1.7% to Rs. 1028 on both the exchanges, close to its record high of Rs. 1037.

Other IT stocks including Mindtree, Wipro, Oracle Financial, eClerx Services also zoomed between 2-3 percent. Coforge Ltd. (earlier known by NIIT Technolgies) also gained up to 1.7% but later was dragged lower.

At the time of writing this copy, Nifty IT index was up about 0.8%, while in early trade it gained up to 1.8 percent to scale an intra-day high of 20146.35, close to its 52-week high level of 20332.

In April to June quarter of FY21, the IT index has outperformed benchmark indices owing to deal wins, deal pipeline as well as margin resilience, giving confidence of strong uptick in sector's topline in upcoming quarters.

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