In the Nifty IT index pack, Mphasis, Infosys, HCL Technologies, L&T Infotech, Tata Consultancy Services (TCS) and Tech Mahindra scaled their fresh 52-week highs
The Nifty IT index hit an all-time high of 24,020.55, rising 1.7 per cent in early morning deals. In the Nifty IT index pack, Mphasis, Infosys, HCL Technologies, L&T Infotech, Tata Consultancy Services (TCS) and Tech Mahindra scaled their fresh 52-week highs. So far this fiscal, Nifty index has rallied 89.42 per cent, significantly outperforming the broader Nifty50 index, which managed to surge 57.62 per cent. The recent rally in the major indices has come to a slight halt due to the situation unravelling in the UK. According to an analyst, with the Dollar index also showing signs of bottoming out, stocks backed with strong fundamentals and low debt are making a comeback. “Still investors should be cautious and buy IT stocks only on every dip of about 3-4% for better returns,” Pavitra Shetty, Independent Analyst/ Co-Founder and Trainer, Tips2Trade, told Financial Express Online.
From March low of 11,179.60, Nifty IT index has zoomed 115 per cent, while NSE’s Nifty soared 78 per cent during the period. IT bellwether, Infosys announced a long-term strategic partnership with Daimler for a technology-driven IT infrastructure transformation. The company said that this partnership will enable it to deepen its focus on software engineering and to establish a fully scalable on-demand digital IT infrastructure and anytime-anywhere workplace.
Suyog Kulkarni, Senior Research Analyst at Reliance Securities, told Financial Express Online that today Nifty IT index rose on the back of large deal signings by Infosys (Daimler) and Wipro (Metro AG). “We expect large cost takeout/ transformation IT deals with employees rebadging is likely to be a medium-term trend,” Kulkarni said. The recent pick up in large deal closures suggests medium resiliency of technology demand. “We also highlight that large and stable IT vendors are likely to witness wallet share gains driven by vendor consolidation and captive monetization efforts by global enterprises,” he added.
Another IT major, Wipro share price jumped 3.7 per cent to Rs 377.50 apiece, after the company on Tuesday informed that its up to Rs 9,500-crore share buyback programme will commence on December 29 and close on January 11, 2021. The firm has also announced a significant strategic digital and IT partnership deal with METRO AG, the leading global wholesale company that is redefining the foodservice distribution industry.