Mumbai: Information technology (IT) majors Infosys Technologies Ltd and Tata Consultancy Services Ltd today gained considerably on the Bombay Stock Exchange after Citigroup said today that Infosys and TCS are the top picks in the IT sector.
The sector trends indicate a strong demand outlook and no impact of the much-discussed global slowdown as of now, the Citigroup report said.
TCS surged to an intra-day high of Rs1,306 up 3.07% and was trading at Rs1,297, while Infosys went up 1.48% at Rs2,125 on the BSE.
The IT share also gained on the positive rally in US markets, which staged their biggest gain in about eight months. US accounts for about 60% of sales of the Indian IT companies.
Shares of Reliance Industries Ltd today said gained over 5% after the company said will explore the possibility of setting up a 2,00,000 tons chemical plant in Jamnagar.
Shares touched an intra-day high of Rs1,420 gaining Rs80 and was trading at Rs1,372 on the BSE.
Leading producer of lead acid storage batteries Exide Industries Ltd rose over 2% to Rs44.75, after a block deal of 7.5 lakh shares was struck in the counter on BSE at Rs44 per share, in early trade. The scrip was trading at Rs44, up 2.21% on the BSE.
Tata Chemicals Ltd gained over Rs12 or 6% after leading brokerage Citigroup upgraded its rating to ‘buy’ from ‘hold’, saying recent interaction with company management suggest a positive outlook for businesses and progress in Brunner Mond integration.
The scrip touched an intra-day high of Rs209.40 and was trading at Rs209.20 on the BSE.
Citigroup has raised earning estimates for FY08 for the company and with the cash and investment worth Rs6 billion on its books Tata Chemicals is likely to consider inorganic way to drive growth.
Shares of Astra Microwave Products Ltd surged up 3.41% after receiving a purchase order worth Rs23.68 crore from the Defence Research Laboratory for supplying sub-systems for radar applications.
The scrip jumped up Rs4.65 to an intra-day high of Rs140.80 and was trading at Rs136.50 on the BSE.
Astra Microwave shares have been in the doldrums since 19 January 2007, where it has fallen steadily to Rs136.15 by 21 March 2007.