The S&P BSE Information Technology index closed the session 1.16% higher at 10,022.53 on Fridays’ trade while Nifty IT Index closed the session 1.08% higher at 10,367.30.
The Information Technology stocks rallied sharply led by the Trigyn Technologies, which ended 9.98% higher at Rs 135 a share on the Bombay Stock Exchange (BSE).
Stock price of Trigyn Technologies surged after its announcement of a long-term agreement with a leading private sector bank in India for enhancing the safety and security through IP-based Surveillance, Fire & Intrusion Alarm Systems for its branches and onsite ATMs at multiple locations across India.
Apart from Trigyn Technologies, Moser Baer India, Nucleus Software, NIIT Technologies, Polaris Consulting and Services, Infosys, Tech Mahindra, Infinite Computer Solutions and 63 Moons Technologies were among the gainers. The price of these stocks surged between 1.30% and 10% on Friday.
According to a research analyst from Nomura, the change in stock prices of IT companies is just a mild correction.
IT companies are indicating that lay offs are largely performance-related and this is nothing out of the normal.
According to Nomura, this kind of rationalisation is likely to be a continuous phenomenon until the workforce realignments towards digital skills is complete.
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“Factors driving this rationalisation include sluggish demand, letting go of staff who are not trainable or staff doing more repetitive commoditised work, and could be replaced by automation; and the need to optimise cost structure,” Nomura in a report.