BSE IT index surges 12% in 4 weeks; KPIT, Tech Mahindra rally over 25%

Shares of information technology (IT) were on a roll in Tuesday's session, with many of them trading at their respective fresh record highs level on expectations that strong order book should support healthy growth momentum going ahead.

Infosys raised its revenue growth guidance for the financial year 2021-22 (FY22) buoyed by a robust deal pipeline. Meanwhile, HCL Technologies expects double-digit revenue growth in constant currency (CC) terms for FY22 in view of the positive demand environment and robust deal pipeline.

Today, the S&P BSE IT index and Nifty IT index, were up nearly 2 per cent each, hitting their respective new highs on the bourses. In comparison, the benchmark indices the S&P BSE Sensex and Nifty50 index were trading in the red, by up to 0.22 per cent at 01:27 pm.

In the past four weeks, the BSE IT index has outperformed the market by surging 12 per cent, as compared to a 6.4 per cent rise in the S&P BSE Sensex. KPIT Technologies, Nelco and Tech Mahindra from the BSE IT index rallied between 28 per cent and 34 per cent. Zensar Technologies, Mphasis, NIIT, Oracle Financial Services, L&T Infotech, HCL Technologies and Persistent Systems soared in the range of 14 per cent to 20 per cent on the BSE.

During the period, two IT majors Tata Consultancy Services (TCS) and HCL Technologies achieved new milestones as their market captitalisation (market-cap) crossed Rs 13-trillion and Rs 3-trillion mark, respectively.

TCS became the second listed company and the first IT company to cross the Rs 13 trillion market-cap after its stock hit a new high in intra-day trade on Tuesday. Shares of TCS hit a new peak of Rs 3,530, up 1.7 per cent on the BSE in intra-day trade.

Thus far in the month of August, in 12 trading days, TCS has rallied 11.4 per cent, against a 6 per cent rise in the S&P BSE Sensex. A sharp rally in stock price helped TCS' market-cap rise to Rs 13.05 trillion. Currently, with a market cap of Rs 13.04 trillion, TCS stands at the number two position in the overall market cap ranking. Reliance Industries, which has a market-cap of Rs 13.73 trillion, stands at the number one position, BSE data shows.

COMPANY	LATEST	ONE-MONTH BEFORE	GAIN(%)
KPIT Technologi.	355.95	266.15	33.74
NELCO	492.30	380.25	29.47
Tech Mahindra	1416.60	1103.00	28.43
Zensar Tech.	455.35	376.90	20.81
Mphasis	2809.70	2395.75	17.28
NIIT	338.90	290.95	16.48
L & T Infotech	4936.75	4288.00	15.13
Oracle Fin.Serv.	4611.50	4018.10	14.77
HCL Technologies	1145.55	1004.90	14.00
Persistent Sys	3231.30	2843.35	13.64
Infosys	1737.60	1555.00	11.74
Datamatics Glob.	280.00	250.75	11.67
L&T Technology	3785.55	3399.15	11.37
TCS	3532.00	3194.65	10.56
Sonata Software	863.80	781.35	10.55
Mindtree	3004.80	2736.55	9.80
Tata Elxsi	4721.30	4302.55	9.73
Wipro	627.50	577.65	8.63
Coforge	4896.85	4549.75	7.63
Aptech	260.80	247.75	5.27

Meanwhile, Tech Mahindra, the top gainer among the Nifty IT index, was up 4 per cent at Rs 1,424 today, having rallied 28 per cent in the past one month. The outperformance for Tech Mahindra was on account of better-than-expected June quarter (Q1FY22) performance with growth across key markets and verticals, robust deal wins and guidance of double-digit growth rates for FY22.

The company reported a 39.17 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 1,353 crore for Q1FY22 as against Rs 972 crore profit posted in the corresponding quarter last year. On a quarter-on-quarter (QoQ) basis, the profit rose by 25.13 per cent. The management remains fairly confident of delivering double-digit revenue growth in FY22E with some upside, given broad-based demand across verticals, recovery in CME, robust deal wins and the highest-ever deal pipeline.

COMPANY	LATEST	ALL TIME HIGH	PREV HIGH	PREV DATE
EClerx Services	2325.00	2395.05	2372.00	03-Aug-21
HCL Technologies	1145.80	1151.65	1129.15	16-Aug-21
Infosys	1737.60	1744.75	1722.00	13-Aug-21
L & T Infotech	4926.10	4948.55	4912.00	13-Aug-21
L&T Technology	3789.50	3853.70	3818.20	29-Jul-21
Mindtree	2997.40	3009.75	2996.50	16-Aug-21
Mphasis	2806.15	2816.60	2805.95	16-Aug-21
Tata Elxsi	4721.30	4770.00	4572.75	15-Jul-21
TCS	3527.50	3534.95	3492.50	16-Aug-21
Tech Mahindra	1414.70	1424.25	1398.95	16-Aug-21
Wipro	627.50	628.85	620.95	16-Aug-21
Zensar Tech.	455.35	461.20	441.20	16-Aug-21