Infosys share hits all-time high, investors gain over Rs 50,000 crore

Shares of Infosys soared 15% to an all-time high of Rs 952 on Thursday, a day after Infosys reported Q1 earning numbers which were way ahead of street estimates. Infosys shares were on track for their best day in more than seven years on Thursday, adding over Rs 50,000 crore to investors wealth in the first hour of trade on BSE.

The stock opened with a gap up, rising 8.24% to Rs 900 and further gained 15% to an intraday high of Rs 952 on BSE. On Wednesday, shares of Infosys closed at Rs 831.45 on July 15, up 6.16%, ahead of the Q1 earnings announcement.

Market capitalisation of IT major stood at Rs 3.85 lakh crore as of today's session. Infosys stock is trading higher than 5, 20, 50, 100 and 200-day moving averages.

Infosys share price has gained 15.7% in one week, 29% in one month and 23% since the beginning of the year 2020.

Commenting on 1QFY21 results of Infosys, Jyoti Roy, DVP Equity Strategist, Angel Broking said, "While the Q1FY21 numbers were significantly above street expectations on all counts, new deal wins also remained strong at USD 1.74bn for the quarter. The management has guided for 0-2% growth in constant currency terms for FY2021 which is a big positive and would go a long way in reaffirming the markets faith in the company. Post the Q1FY21 numbers we expect upgrades in FY2021 and FY2022 numbers."

The IT major also gave a full-year constant currency revenue growth guidance amid COVID-19 pandemic and said it expects its FY21 revenue to grow by up to 2%  in constant currency terms.

"Infosys results beat estimates substantially (revenue/margins), but the key positive is the reiteration of revenue guidance growth of 0-2% for FY21," said a report by Edelweiss Research.

Country's second-largest software exporter, reported 11.5%  growth in consolidated net profit (after minority interest) at Rs 4,233 crore for the first quarter ended June 30, 2020 against Rs 3,798 crore in the same period last year. Infosys reported revenue growth YoY at 8.5% to Rs 23,665 crore in Q1 from Rs 21,803 crore in the corresponding period last fiscal.

Tracking gains from Infosys, Nifty IT index gained nearly 4% in early trade, with IT stocks such as HCL Tech, TCS, Tech Mahindra trading as top gainers on NSE and BSE

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