Stock market today: Speaking on the day trading guide for Wednesday, stock market experts said that rise in IT stocks is due to the expected changes taking place in the EPS (earning per share) and private earning or PE ratio in other IT stocks post Infosys results
Stock market today:Ahead of Infosys results, the IT stocks have suddenly become bullish in the intraday trade. The NSE Nifty IT index shot up around 1.25 per cent where stocks like Wipro, MindTree, Brightcom Group, MphasiS, Coforge, Zensar Technologies and Tech Mahindra were among the leading gainers in the intraday trade session. Speaking on the day trading guide for Wednesday, stock market experts said that rise in IT stocks is due to the expected changes taking place in the EPS (earning per share) and private earning or PE ratio in other IT stocks post-Infosys results. They said that market is expecting strong Infosys numbers in upcoming results and hence investors have started buying other IT stocks by equating their EPS and PE ratio with expected PE and EPS of Infosys post-results.
Speaking on the upcoming Infosys results fueling other IT stocks Ravi Singhal, Vice Chairman at GCL Securities said, "Market is expecting strong Infosys result that would change the EPS and PE ratio of other IT stocks. Stock market investors are buying other IT stocks due to this positive Infosys result impact on other IT stocks as positive Infosys results will have positive impact on the EPS and PE ratio of other IT stocks."
On why IT stocks are skyrocketing ahead of Infosys results Saurabh Jain, AVP-Research at SMC Global Securities said, "Market is expecting strong Infosys results as they expect the company to come with revised upside guidance and earnings. Earlier, MphasiS results were beyond the market expectations that triggered upside rally in the mid-cap IT stocks, which is still persisting. Now, after the strong Infosys results, there is huge expectation of Mphasis like rally getting replicated in the large-cap IT stocks too."
Day trading guide for Wednesday
On day trading guide for Wednesday Saurabh Jain of SMC went on to add that in the coming one and half to two years, one should keep 15-20 per cent of one's portfolio allocation in IT stocks as these stocks are expected to remain portfolio stocks in the above-mentioned time period. He said that one can buy Tech Mahindra, HCL Tech and Infosys as potential IT stocks to buy today for better returns in long-term.
Today, MindTree share price shot up around 7.5 per cent after strong first quarter results for FY 2021-22. The IT companyn reported QoQ revenue growth of 7.7 per cent to $310.5 million. In INR (Indian National Rupee) terms, growth was 8.6 per cent QoQ led by Indian rupee depreciation. The growth was broadbased and aided by traction in travel segment and North America market.