IT stocks surge
Apart from TCS hitting a new high, Infosys also went on to hit a new high today at Rs.1192.70, HCL Tech rose 3% to Rs.904.85 and Wipro rose almost 2.5% to Rs.365 and Tech Mahindra was up 2% at Rs.947, very close to its 52-week high of Rs.950. The IT sector is currently up 2%.
For TCS, apart from the buyback, it is moving along with the entire IT stocks trend, which is on the rise, riding on the optimism sparked by Accenture’s better-than-expected earnings for quarter ending 30th Nov.
The company reported a 2% (YoY) rise in revenue at $11.8 billion on constant currency terms, much better than most estimates. Its EBIT margin was up 50 bps at 16.1% and utilization increased 300 bps (QoQ) to 93%, the highest in a decade.
For entire FY21, its outlook is positive, with revenue expected to rise between 4 to 6% from the previous forecast of 2 to 5%.
The company also reported new deal wins worth $12.9 billion, up 25% (YoY).