IT stocks were among major movers in the Indian stock markets on Thursday. Top names in the segment TCS, Wipro, Infosys, HCL Tech, L&T Infotech, Mindtree, Tech Mahindra and Coforge hit fresh 52-week highs after Tata Consultancy Services in the previous day announced its Q2 results.
Shares could be rising from the anticipation of higher revenue for companies in the sector with an increase in spending on IT and outsourcing by businesses amid a rise in digitalisation due to the pandemic. TCS's approval of buyback plan and Wipro announcing its own buyback plan is also driving these stocks as investors expect more cash tech companies will be rewarding its shareholders.
On Wednesday, TCS reported a 3 percent drop in dollar revenue in the September-ended quarter on a constant currency basis compared to the year-ago period which is a significant improvement from 6 percent in the previous quarter. The company's results, which was the first to report Q2 earnings, may have indicated to investors that the worst is over for the IT industry.
Shares of TCS rose 5.2 percent to another all-time high of Rs 2,877.90.
Shares of Larsen & Toubro Infotech Ltd (LTI) rose as much as 10 percent to a new all-time high of Rs 2,959. Based on technical analysis, experts say that the stock saw a breakout above its 50-Day Moving Average at 2,508 on 28 September and has rallied over 15 percent since. Its outbreak from a consolidation zone has caused the stock to more than doubled from its 52-week low of Rs 1,207 on 19 March.
MindTree Ltd surged 7 percent to its 52-week high of Rs 1,484, while HCL Tech was up 5 percent to Rs 873. Wipro jumped over 5 percent to Rs 353.65, Infosys climbed over 4 percent to Rs 1,109.80, Tech Mahindra up 4.2 percent to Rs 882 and Coforge Ltd rose nearly 4 percent to Rs 2,498.