IT shares surge, TCS, Infosys, HCL Tech touch 52-week high
New Delhi: Shares of information technology (IT) companies surged in the morning trade even as the broader market was trading with marginal gains.
The BSE IT index was trading with gains of 1.54% at 12,213.70. It touched a high of 12,272.23 points. The BSE Teck index also surged to a high of 6,820.44, registering a jump of 1.61% in morning trade. The index was quoted at 6,784.92, up 1.08% at 10.52am. Meanwhile, the 30-share benchmark index Sensex was trading with gains of 0.35% at 34,891.41 points.
The leading IT companies like Infosys, Tata Consultancy Services (TCS), HCL Technologies and Tech Mahindra registered gains of as much as 3% on the BSE.
Infosys surged 3.30% to touch a 52-week high of Rs 1,160, registering a surge in its shares price for the eighth consecutive session. TCS also hit a new high of Rs 2925.00. Similar was the case HCL Technologies also which touched its 52-week high of Rs 962.70. Meanwhile, shares of Tech Mahindra touched a high of Rs564, up 1.11% over its previous closing price.
Morgan Stanley in a research note has said that the Indian IT services stocks are set for a turnaround in 2018 as recovery in spending is “imminent”. According to the global financial services major, a turnaround in IT spending could quickly turn sentiment on these stocks. Though the sector faces risks from automation and a slower pace of market share gains from global vendors, a cyclical rally could be in the offing, it added.