BSE IT index was trading near its record high of 27,074 in firm deals on Tuesday. At least 10 stocks including Infosys, Mindtree, among others hit their respective highs.
So far this month, the BSE IT index has rallied nearly 10 per cent, against 2 per cent rise in the 30-share index. Image Reuters
BSE IT index was trading near its record high of 27,074 in firm deals on Tuesday. At least 10 stocks including Infosys, Mindtree, L&T Technology Services (LTTS), Sonata Software, Coforge, and Persistent Systems, among others hit their respective highs. BSE IT index jumped 2.38 per cent to 27,000 intraday as against a gain of 0.66 per cent in S&P BSE Sensex. From current levels, the IT index is just 0.27 per cent away from its all-time high. So far this month, the BSE IT index has rallied nearly 10 per cent, against a 2 per cent rise in the 30-share index. In today’s session, IT stocks were outperforming the major indices.
The current trend can be continued for this week at least, says Vishal Wagh, Head of Research, Bonanza Portfolio Ltd. “The Nifty IT index may face resistance around 27,000-27,176. But stock-specific momentum may remain in the market,” Wagh told Financial Express Online. Stocks such as Mindtree, HCL Technologies, and Coforge may continue to lead the rally.
Ruchi Burde and Seema Nayak, analysts at BOB Capital Markets, said that with the acceleration in digital demand post Covid-19, reskilling has gained prominence for IT players. Indian IT majors have stepped-up efforts, deploying 1-1.5 per cent of revenue to upskill their employees. This figure is expected to rise in the coming years. “Nasscom has taken it upon itself to digitally train four million IT professionals in the next five years,” analysts added.
Infosys has a dedicated ‘Reskill and Restart’ platform and has created more than 75 new courses to make its staff future-ready. “We believe Indian IT large caps have an advantage over midcaps in terms of capturing the ongoing demand upcycle because of their timely investments in reskilling,” they added.
Among individual stocks, Infosys shares hit a record high of Rs 1,406.25, on the BSE, surpassing its previous high of Rs 1,392.70, which touched on January 13 this year. Besides, Infosys has also informed the bourses that a meeting of the board of directors of the company will be held on April 13 and 14, to approve and take on record the audited consolidated financial results of the company and its subsidiaries for the quarter and year ending March 31, 2021. Other stocks in the BSE IT index, Coforge hit a 52-week high of Rs 2,984.10, FSL Rs 115.60, Intellect Design Arena Rs 1,406.25, L&T Technology Services Rs 2,858.35, Mindtree Rs 1,992, Persistent Systems Rs 1,867, RPSG Ventures Rs 397, Sonata Software Rs 533.35 and Zensar Technologies Rs 335.90.