Shares of information technology (IT) companies continued their upward movement with Nifty IT index hit fresh 52-week high in otherwise subdued market. Infosys, Tata Consultancy Services (TCS), HCL Technologies and Tech Mahindra were up in the range of 1% to 2% on the National Stock Exchange (NSE) on Wednesday. At 09:46 AM; Nifty IT index was up 1.3% at 12,590, as compared to 0.13% rise in Nifty 50 index. IT index hit a fresh 52-week high of 12,653 in intra-day trade today.
The index is 2% away from its all-time high of 12,908 touched on March 4, 2015 in intra-day deal. In past one month, Nifty IT index has outperformed the market by surging 11.5% against 3.7% rise in the benchmark index. Among the individual stocks, Infosys was trading higher for the eight straight trading days, up 3% to Rs 1,156 on NSE. The stock rallied 14% since January 5, 2018, quoting above its share buyback price of Rs 1,150 per share. TCS hits a new high of Rs 2,925, up 2.6%, extending its yesterday’s 4% surge on NSE. The stock surpassed its previous high of Rs 2,860 touched on Tuesday, January 16, 2018. "Indian IT services stocks could be set for a turnaround in 2018," said Morgan Stanley analysts Parag Gupta and Gaurav Rateria in a note dated January 15. "Valuations are at or below long-term averages and an improving global macro could spur tech spending, which could re-rate stocks," the duo said adding that they prefer large caps. CLICK HERE TO READ FULL REPORT.