Infosys surges 4% in early trade on robust earnings

Infosys surges 4% in early trade on robust earnings

Mumbai: Infosys Technologies on Friday surged as much as 4% on the Bombay Stock Exchange in early morning trade after the software services giant beat market expectations and reported 7.5% jump in its net profit for the second quarter of this fiscal.

Shares of the company surged 3.73% to witness their day’s high of Rs2,293.65 on the BSE and nearly 3% to touch a high of Rs2,276.80 on the NSE.

Infosys Technologies on Thursday reported 7.54% rise in its consolidated net profit at Rs1,540 crore and an over 6% rise in total income at Rs5,821 crore for the quarter ended 30 September 2009.

The board declared an interim dividend of 200% at the rate of Rs10 a share.

The surge in the counter comes as a respite for the stock, which has been on a downtrend since 1 October on the back of concerns that the appreciating rupee would weigh on the profitability of the software services exporter.

“Infosys results have boosted investor sentiment to a certain extent and would propel the IT counter and the broader markets, but the appreciating rupee might be a cause of concern for the stock, despite robust earnings and higher guidance," SMC Global vice president Rajesh Jain said.

The IT index also followed the cue and opened on a bullish note to touch a high of 4,449.60 points, up 110.60 points from its previous closing price.

On the volume front, a total of over seven lakh shares exchanged hands on both the bourses within the first few minutes of trade.

The results, which were above street expectations, helped the two benchmark indices to make a positive opening. The 30-share index, Sensex, surged over 119 points to a high of 16,963.08 points, while the wide-based Nifty gained 30 points to a high of 5,032.60 points.