IT shares in rally; Tech Mahindra's m-cap tops Rs 1-trillion; Wipro up 5%

Tech Mahindra's share price rallied 6 per cent and hit an all-time high of Rs 1,060 on Friday
Shares of information technology (IT) companies were trading higher, surging up to 6 per cent on the BSE, ahead of sector giant Tata Consultancy Services' (TCS'), October-December 2020 quarter (Q3FY21) result, scheduled to be announced after market hours today.

Meanwhile, Tech Mahindra has joined the elite Rs 1-trillion market capitalization (market-cap) club on the BSE as its share price rallied 6 per cent and hit an all-time high of Rs 1,060 on Friday.

With market-cap of Rs 1.02 trillion at 02:15 pm, Tech Mahindra became the fifth IT company that joined Rs 1-trillion m-cap club. Overall, the company stood at 30th position in m-cap ranking, BSE data shows. Currently, among IT companies, TCS is numero uno with Rs 11.66 trillion market-cap, followed by Infosys (Rs 5.53 trillion), HCL Technologies (Rs 2.69 trillion) and Wipro (Rs 2.44 trillion), data shows.

The Tata Group company, TCS, was up 3 per cent at Rs 3,112 on the BSE, and is expected to post a robust performance for the third quarter of the financial year 2021 (Q3FY21) on the back of strong demand in cloud adoption, tailwinds of large digital deals, project ramp-up and lower furloughs, believe analysts.

The IT firm's revenue in constant currency (CC) terms is expected to rise in the range of 2.4-4 per cent on quarter-on-quarter (QoQ) basis while it may grow between 3-4.5 per cent in dollar revenue. As for revenue growth in rupee terms, it is expected to be up between 3.4-5 per cent year-on-year (YoY) and 2.7-4.2 per cent quarter-on-quarter (QoQ). Besides, analysts expect TCS to post a 3-8 per cent year-on-year (YoY) growth in its Q3 net profit. CLICK HERE FOR FULL REPORT

Among the other individual stocks, Wipro too hit a record high of Rs 429, up 5 per cent on the BSE. Larsen & Toubro Infotech gain 4 per cent to Rs 4,078, while, Infosys (Rs 1,302) and HCL Technologies (Rs 992) were up 3 per cent.

Indian IT companies may post a strong performance for Q3FY21 on account of healthy order pipeline, large deal signings and going by strong earnings from Accenture, believe analysts. Further, improvement in demand post Covid-19, acceleration in adoption of public cloud model, lower furloughs and decent growth in sectors such as consumer, technology and healthcare are likely to add to the revenues of the IT companies, they say. CLICK HERE TO FULL REPORT

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