IT stocks may help Nifty50 claim new high
Published On: Wednesday, March 10, 2021 | By: Team KnowMyStock
Buoyed by an overnight rally in tech stocks in the US, Indian IT stocks caught investor fancy today(10th March 2021). Tech-heavy Nasdaq gained about 4 percent on Wall Street on 9th March with Tesla Inc jumping 20 percent, the most in almost a year, while Amazon.com Inc and Microsoft Corp posted the biggest single-day gains in five weeks. Consequently, the Nifty IT index back home was outperforming the benchmark Nifty50 index. At 11:26 am, the Nifty IT index was ruling 1.4 percent higher at 25,936.5 levels, having touched a high of 25,984 levels in the intra-day deals. Among individual stocks, shares of KPIT Technologies, L&T Technology Services (LTTS), and Mindtree hit their respective record highs on the BSE in intra-day trade.
Coforge surged nearly 7 per cent to Rs 2,750, while Larsen & Toubro Infotech gained 4 per cent to Rs 4,070 in intra-day trade on the BSE. Zensar Technologies, LTTS, Wipro, Mindtree and Mphasis were up in the range of 2 per cent to 3 per cent, while, Infosys, HCL Technologies and Tech Mahindra were up between 1 per cent and 2 per cent.
The Indian IT services industry reported one of its strongest third quarters in FY21, delivering USD revenue growth of 4.9 per cent quarter on quarer, helped by increased technology spends across all key industries (despite adverse seasonality), pick up in deal sizes, and faster conversion from pipeline to orders.
Analysts continue to see Cloud migration, Digital transformation, and user experience as multi-year opportunities for Indian IT companies. These will be complimented by cost takeout deals as clients normalize their budgets to increase spending on Digital transformation.
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