IT shares rise ahead of TCS third quarter earnings
BusinessToday.In January 8, 2021
Information Technology (IT) firms were in focus today, with heavyweights like Tech Mahindra, HCL Technologies, Infosys and Tata Consultancy Services trading as top gainers on BSE and NSE, ahead of earnings announcement of the country's largest IT company, TCS.
TCS is likely to report QoQ growth of 4.5% in Q3 in USD terms, according to Edelweiss.
TCS stock was up 2%, as the company plans to announce its third-quarter numbers today. Tata Consultancy Services (TCS) share price touched an intraday high of Rs 3110 (2.55%) and traded 0.42% away from 52 week high of Rs 3114.45. Meanwhile, Infosys stock touched an intraday high of Rs 1297.2 (2.79%) and 0.49% away from 52 week high of Rs 1302.5.
While Nifty IT index traded 2.675% higher on Friday, BSE IT - Software index gained 2.58% during today's session.
HCL Technologies stock rose 2.51% intraday to Rs 988.45, trading 0.99% away from 52 week high of Rs 998. Wipro hit new high of Rs 427.6, rising 5.13% and Tech Mahindra, too, hit a fresh record high of Rs 1,039.35, up 4.48% intraday.
As Indian IT companies gear to announce their third-quarter earnings of the current fiscal, industry experts believe that the October-December results will be best in a decade.
According to a recent report by Edelweiss Research, Indian IT companies are poised to report their best Q3 in a decade on the back of highest-ever order books, marked revenue acceleration, margin expansion, and ongoing outlook upgrades.
Edelweiss said that upward guidance revisions by Indian IT companies, which set in two quarters ago, will be followed by upgrades in consensus forecasts for quarters to come.
"We expect Q3FY21 to continue to surprise, driving guidance upgrades by IT companies and estimate revisions by Street alike," Edelweiss said in its research report on IT sector.