The Nifty IT index has also hit a 52-week high of 17,276, surpassing its previous level of 16,882. In the Nifty IT pack, out of 10 constituents, 8 were trading with gains.
Infosys share price zoomed 12.56 per cent to hit a fresh 52-week high of Rs 935.90 apiece on BSE, a day after the company reported a strong set of numbers for the April-June quarter for the current fiscal with net profit at Rs 4,233 crores. The company had posted a net profit of Rs 3,802 crore in the corresponding quarter of the preceding year. Despite coronavirus-induced lockdown, IT major signed deals worth $1.7 billion during the quarter under review. Infosys stock price has soared 83 per cent from March lows of Rs 511 apiece. “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,” said Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd.
Research and brokerage firm Motilal Oswal has reiterated a ‘buy’ rating on the stock with a target price of Rs 1,050, an upside of 26.28 per cent from yesterday’s close. “As the COVID-19-led disruption eases, we expect further expansion in margins as investments stabilize and back-ended productivity benefits kick in,” Motilal Oswal Financial Services said in a report. It also expects Infosys to be a key beneficiary in terms of recovery in IT spends in FY22. “Given the phenomenal resilience demonstrated by the IT sector in the current context, we foresee significant scope for a sector re-rating,” it added.
The Nifty IT index has also hit a 52-week high of 17,276, surpassing its previous level of 16,882. In the Nifty IT pack, out of 10 constituents, 8 were trading with gains. Along with Infosys, L&T Infotech, MphasiS, HCL Tech, TCS (Tata Consultancy Services) shares have hit their respective 52-week highs, aiding growth of nearly 5 per cent in the IT index.
Around 10 AM, Infosys shares were trading 12 per cent higher at Rs 931 apiece, as compared to a 0.71 per cent rise in the benchmark S&P BSE Sensex.