The Nifty IT index hit an all-time higher of 24,020.55, increasing 1.7 per cent in early morning bargains. In the Nifty IT index pack, Mphasis, Infosys, HCL Technologies, L&T Infotech, Tata Consultancy Services (TCS) and Tech Mahindra scaled their fresh 52-week highs. So far this fiscal, Nifty index has rallied 89.42 per cent, substantially outperforming the broader Nifty50 index, which managed to surge 57.62 per cent. The current rally in the main indices has come to a slight halt due to the scenario unravelling in the UK. According to an analyst, with the Dollar index also displaying indicators of bottoming out, stocks backed with powerful fundamentals and low debt are creating a comeback. “Still investors should be cautious and buy IT stocks only on every dip of about 3-4% for better returns,” Pavitra Shetty, Independent Analyst/ Co-Founder and Trainer, Tips2Trade, told TheSpuzz Online.
From March low of 11,179.60, Nifty IT index has zoomed 115 per cent, although NSE’s Nifty soared 78 per cent in the course of the period. IT bellwether, Infosys announced a lengthy-term strategic partnership with Daimler for a technologies-driven IT infrastructure transformation. The business mentioned that this partnership will allow it to deepen its concentrate on computer software engineering and to establish a totally scalable on-demand digital IT infrastructure and anytime-anyplace workplace.
Suyog Kulkarni, Senior Research Analyst at Reliance Securities, told TheSpuzz Online that today Nifty IT index rose on the back of significant deal signings by Infosys (Daimler) and Wipro (Metro AG). “We expect large cost takeout/ transformation IT deals with employees rebadging is likely to be a medium-term trend,” Kulkarni mentioned. The current choose up in significant deal closures suggests medium resiliency of technologies demand. “We also highlight that large and stable IT vendors are likely to witness wallet share gains driven by vendor consolidation and captive monetization efforts by global enterprises,” he added.
Another IT main, Wipro share cost jumped 3.7 per cent to Rs 377.50 apiece, soon after the business on Tuesday informed that its up to Rs 9,500-crore share buyback programme will commence on December 29 and close on January 11, 2021. The firm has also announced a important strategic digital and IT partnership deal with METRO AG, the top international wholesale business that is redefining the foodservice distribution business.