Infosys share price hit a fresh record high of Rs 1,755.60 apiece on BSE, taking the total market capitalisation to $100 billion. Infosys is the second IT firm, after Tata Consultancy Services (TCS), which has touched the mark of Rs 7.43 lakh crore. Infosys shares jumped nearly one per cent to Rs 17,55.60, however, the share price fell to day’s low of Rs 1,712.50 in the afternoon deals. Recent efforts on refreshed offerings and vast product portfolio have helped Infosys to expand its client outreach. Additionally, the best-in-class show on the ESG front with carbon neutrality, diversity, and stronger governance standards bodes well for long-term value creation, said an analyst.
IT sector is a leader of a current bull run in the Indian equity market and the Nifty IT index is one of the best performing index in the world. Most of the IT stocks created great wealth for the investors this year including Infosys which has touched the milestone of $100bn market capitalization. Infosys outperformed the TCS this year on the back of better than expected Q1 and attractive valuations. “The outlook of the IT sector is looking very strong as COVID-19 is acting as a key catalyst for the exponential growth of the Indian IT industry where managements are very confident about the coming years. If we talk about the fund flows then outflows from Chinese tech stocks due to new regulations in China may turn inflows for Indian tech companies as there is more stability in terms of policies and that may lead to further bullish momentum in Indian IT stocks,” Santosh Meena, Head of Research, Swastika Investmart, said.
Meena also said that the overall trend is strong bullish but after a vertical run, market may see some consolidation or minor correction in this space and that will be a good buying opportunity. Technically, 1690-1675 is an immediate demand zone for Infosys while 1600 will be the strong support at any correction. On the upside, Infosys can reach a level of 1900 in the near term.
Analysts also expect Infosys to report superior revenue growth over FY21-FY24 driven by execution-focused stable management, surge in mega deals and digital acceleration.”We expect Infosys to be a key beneficiary of multi-year technology upcycle and see the company crossing its mcap valuation of US$110bn by FY24,” Suyog Kulkarni, Senior Research Analyst at Reliance Securities, said. In the traded volume terms, 1.74 lakh shares have exchanged hands on BSE, while a total of 58.40 lakh shares have traded on NSE so far in the day.
In a BSE filing, IT bellwether announced the signing of a new minimum three-year contract with UCAS, the admissions service for UK higher education. UCAS and Infosys have enjoyed a successful technology partnership since 2015 but following an extensive tender process the new contract represents a major step change in the relationship, focusing on delivering seamless customer service experiences through greater automation, innovation and efficiency.
On Monday, Infosys Foundation, the philanthropic and CSR arm of Infosys, announced that it has completed constructing a 75,000 sq. ft state-of-the-art, multidisciplinary Outpatient Department (OPD) block at the Kidwai Memorial Institute of Oncology, Bengaluru. The Infosys Foundation spent Rs 25.5 crore on this new OPD block, which will cover over 12 departments, and aim to accommodate nearly 1,800 patients every day.
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