IT stocks led the rally today buoyed by share buybacks announced by Wipro and TCS. TCS reporting better than expected Q2 earnings show also led to positive sentiment on Dalal Street. Wipro stock hit its all time high of Rs 367.75, up 9.69% after the IT firm announced its board would consider a share buyback on October 13.
On a similar note, TCS share too scaled a fresh all time high of Rs 2,885, rising 5.39% intra day on BSE after its board cleared an up to Rs 16,000-crore buyback plan. On October 7, board of TCS approved a share buyback proposal for an aggregate amount not exceeding Rs 16,000 crore. The IT major plans to buy back up to 5.33 crore equity shares of the company.
TCS proposed to carry out the buyback at Rs 3,000 per share, which was at 9.6 per cent premium to closing price of Rs 2,737.40 on October 6.
TCS also reported its Q2 earnings today which beat expectations on Dalal Street. The IT major reported a 6.66 per cent rise in consolidated profit in September quarter.
Profit rose to Rs 7,475 crore in Q2 against Rs 7,008 crore profit in June quarter of current fiscal. On a sequential basis, revenue climbed 4.73 per cent from Rs 38,322 crore in the April-June quarter.
Other IT stocks which hit their all-time highs intra day driven by positive sentiment from TCS Q2 earnings were HCL Tech, Infosys and Tech Mahindra.
Nifty IT index closed 3.23% or 679 points higher at 21,697.
Subsequently, benchmark indices closed higher for the sixth straight session on Thursday, tracking positive cues from global equities and strong IT rally at home. While Sensex ended 303 points higher at 40,182 and NSE Nifty50 index gained 95 points to 11,834.Share Market News Live: Sensex up 550 points, Nifty at 11,880; HCL Tech, TCS, Infosys, SBI top gainers