Shares of IT companies shone in today's session (March 10, 2021) and the Nifty IT index was the outlier in trade with gains of 2 percent at the time of writing this report.
Individually some of the IT stocks even scaled their new 52-week highs such as KPIT (Rs. 174), L&T Technology Services (Rs. 2852.25) and Mindtree (Rs. 1894).
Also, some of the other IT names such as Coforge, HCL Technologies, Tech Mahindra andWipro gained between 1 to 7 percent.
Now what is driving IT stocks higher in today's session:
It is being viewed by brokerage firm that the US stimulus aid of a huge $1.9 trillion which shall be now passed into law by the US President shall will augur well for the Indian IT industry (as it primarily recoups majority of its revenue from this nation.
Another favorable for the IT sector is the good financial numbers for the December ended quarter which saw USD revenue growth of 4.9 percent q-o-q owing to increasing technology spends across verticals amid the coronavirus pandemic, increase in deal sizes and also faster transition from pipeline to orders.