Tata Consultancy Services (TCS) share price jumped 3.5 per cent to hit a fresh 52-week high of Rs 3,230 apiece on BSE today, following better-than-expected October-December quarter results for the fiscal. The IT major reported 7.17 per cent on-year rise in the consolidated net profit to Rs 8,727 crore, as compared to Rs 7,504 crore in the July-September quarter. Nifty IT index too topped 26,800 points, rising 2.5 per cent in the opening deals. Other IT stocks in the index also touched new 52-week highs with Infosys rising to Rs 1,365.95, HCL Technologies to 1,029, Wipro to Rs 444.95, Mindtree to Rs 1,764.50 and Tech Mahindra to Rs 1,068.65 per share. AR Ramachandran, Co-founder & Trainer, Tips2Trade, told Financial Express Online that strong Q3FY21 results with guidance of double-digit growth in FY22 has led TCS and other IT stocks making new highs.
Ramachandran also said that technically, all the frontline IT stocks are overbought and hence any uptrend should be used to exit previous buy positions. Analysts at Motilal Oswal Financial Services believe that IT services have entered into a technology upcycle, led by cloud and data-driven deals coming onto the market. “Given TCS’ size, capabilities, and portfolio stretch, it is rightly positioned to leverage expected industry growth,” the report said. Those at Kotak Institutional Equities said that TCS’ approach to cloud refreshing and holistic where it is setting itself up for a multi-year opportunity rather than simply focusing on setting up a digital foundation.
Wipro share price jumped 3.5 per cent as its Rs 9,500 crore buyback offer will close today. Receiving an overwhelming response from investors, Wipro buyback offer was subscribed 326 per cent till Friday. Moreover, the board of directors of Wipro is scheduled to meet on January 13, 2021, to consider and approve the audited financial results of the company for the quarter ended December 31, 2020 (Q3FY21). The board will also consider the declaration of interim dividend, if any, for the financial year 2020-21, it said.
At 10 AM, TCS shares were trading 1.5 per cent up at Rs 3,166.75 apiece on NSE, as compared to a rise of 0.91 per cent or 130.05 points in Nifty 50 index.