TCS, Infosys, TechM, Wipro, HCL Tech, LTIMindtree: 6 IT shares add Rs 1.7 lakh crore m-cap in 2 days!

Shares of six top IT firms namely Tata Consultancy Services (TCS) Ltd, Infosys Ltd, HCL Technologies Ltd (HCL Tech), Wipro and LTIMindtree Ltd added a whopping 1.74 lakh crore in market capitalisation in mere two sessions, with 56 stocks from the BSE IT index adding a total Rs 1.8 lakh crore value during the same period. Since the results season kicked off with TCS results post market hours of Wednesday, IT stocks are on an up move.

The deal wins reported by IT firms for the June quarter were strong (except for HCL Technologies) and the numbers too were mostly in line with Street estimates. Add to that was the bullish momentum in global technology stocks in a backdrop of economic data that suggested the US Fed rate hike cycle is nearing its end.

TCS rose 5.13 per cent to Rs 3,512 level on Friday. This was in addition to 2.47 per cent rise on Thursday. The IT firm alone added Rs 92,135 crore to its m-cap in the two-day period. Infosys rose 4.4 per cent to Rs 1,425.35 on Friday, in addition to 2.4 per cent rise on Thursday. This stock saw m-cap swelling Rs 38,181 crore in the two-day period.

HCL Technologies rose 3.80 per cent to Rs 1,151.30 on BSE. It fell in the previous session on earnings miss. Yet the stock added Rs 11,194 crore to its m-cap for the two-day period. Wipro rose 2.69 per cent today, in addition to 0.7 per cent on Thursday, adding some Rs 17,888 crore to its market value. LTIMindtree and Tech Mahindra added Rs 8,292 crore and Rs 6,687 crore, respectively, to their m-cap.

HCL Tech maintained its revenue growth guidance for FY24 at 6-8 per cent YoY in CC terms, while it sees EBIT margin in the range of 18-19 per cent, the same as before. This is even as analysts feel achieving that would be an uphill task. In the case of Wipro, the IT major has guided for IT Services business segment revenue in the range of $2,722 million to $2,805 million for the ongoing September quarter. This translates to a sequential guidance of minus 2 per cent to 1 per cent in constant currency terms. This was against minus 3 to minus 1 per cent for the March quarter. TCS does not offer guidance but its deal wins were strong.