IT shares led the rally today ahead of the earnings season for Q1 which begins tomorrow. IT major TCS will report its earnings for the quarter ended June 2020 on July 8. TCS share hit an all time high of Rs 2,301 against previous close of Rs 2,263 on BSE. The large cap stock has gained 9.02% in the last 5 days. TCS stock stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The large cap stock has risen 5% in last one year and since the beginning of this year. TCS share has gained 10.83% in last one month. The IT firm's market cap rose to Rs 8.51 lakh crore on BSE.
Similarly, BSE IT index gained 322 points or 2.10% to 15,991 and Nifty IT index rose 320 points to 15,784 ahead of TCS ' Q1 earnings tomorrow.
On BSE IT index, top gainer was Aptech Ltd share which closed 14.34% higher at Rs 114.45. the IT stock gained 17.68% to Rs 117.8 against previous close of Rs 100.10.
NIIT Tech share gained 9.8% intra day to Rs 1,576 against previous close of Rs 1436. The share closed 5.37% or Rs 77 higher at Rs 1,513 on BSE.
Another IT major Infosys closed 4% or Rs 30 higher at Rs 794 after ratings agency Goldman Sachs added the stock to its conviction list while maintaining a buy call on the IT stock.
Goldman Sachs maintained Buy rating on Infosys and raised its price target to Rs 895 from Rs 756, adding the street is under-appreciating the technological strengths of the company. The target price is nearly 18% higher to previous closing of Rs 763.75. The brokerage noted the IT major was likely to benefit from the acceleration of information system digitalisation and that it has a large Indian delivery base to be a key competitive advantage.
ICICI Securities said in an IT sector update said, "While the pandemic is expected to impact near-term growth, we expect a revival in H2FY21E. This, coupled with increased traction in digital technologies, vendor consolidation opportunity for Indian IT players, improved IT spending bodes well from long term growth perspective," the brokerage firm said in IT sector update."
By Aseem Thapliyal