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MUMBAI : Shares of information technology (IT) companies surged higher on Wednesday with the Nifty IT index hitting fresh lifetime high after Infosys and Wipro announced large deal wins, that could further accelerate the IT sector's momentum.

At 2:10pm, Nifty IT advanced 487.95 points or 2.07% to 24,099.55, while the broader NSE Nifty 50 was at 13,544.35, up 78.05 points or 0.58%.

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All the stocks in the Nifty IT were trading in green. Mphasis, Mindtree, gained more than 4% each, while Coforge, Larsen & Toubro (L&T) Infotech, Tata Consultancy Services, HCL Technologies gained in the range of 1.42%-3.22%, Tech Mahindra, and Naukri gained 0.86% and 0.34% respectively. Birlasoft and Persistent Systems from the non-index stocks, too, hit new highs today.

Wipro Ltd gained nearly 5% at 381.65 apiece to its highest in over ten weeks after it signed a $700 million deal with Metro AG. The stock was trading close to its record high of 382 touched on October 13, 2020.

The estimated deal value for the duration of the first 5 years is approximately $700 million. With the intention to extend up to 4 additional years, it can be a potential spend of up to $1 billion, Wipro said in a press release.

Infosys Ltd rose about 3% to scale a record high after it signed a deal with Daimler AG to drive hybrid-cloud powered innovation and IT infrastructure transformation. The company has not shared deal specifics.

After the receipt of all regulatory approvals, Daimler AG will transform its IT operating model and infrastructure landscape across workplace services, service desk, data center, networks and SAP Basis together with Infosys, the company said in a press release.

Analysts at Motilal Oswal in a note to clients said the large deal wins for Infosys and Wipro reinforces their positive stance on the IT Services industry.

"Recent captive takeover announcements have mainly come from Europe, TCS with Postbank Systems and Pramerica Systems, Infosys with Rolls-Royce and Daimler and Wipro with Metro as this presents an opportunity for Indian IT companies to increase their penetration in Continental Europe, which has historically lagged US in outsourcing adoption". Despite rich valuations, the brokerage remain positive on the sector alluding to the multiyear growth cycle awaiting the sector.it added.

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