CNX IT index surges 4% post Infosys June quarter results

Infosys, HCL Technologies, Wipro, Tech Mahindra and Mindtree were up 2%-10% on the NSE.

Shares of information technology (IT) companies were trading higher on the bourses after Infosys reported better-than-expected results for April-June 2015 quarter (Q1).

Infosys, HCL Technologies, Wipro, Tech Mahindra and Mindtree were up 2%-10% each on the National Stock Exchange (NSE).

At 10:27 AM, CNX IT index surged 4% or 454 points at 11,721 against a 0.35% rise in the CNX Nifty at 8,627.

Infosys, the largest gainer among IT pack, rallied 10% to Rs 1,101 after the company reported better-than-expected consolidated net profit of Rs 3,030 crore for the first quarter ended June 30, 2015 (Q1), against average analyst estimates of Rs 2,993 crore. The stock surged nearly 15% to Rs 1,149 on the NSE in intra-day trades.

Revenues during the reporting quarter grew 7% at Rs 14,354 crore on a quarter-on-quarter (QoQ) basis, the highest in 15 years.

Analysts estimated revenues of Rs 14,106 crore for the quarter.

The volume growth was at 5.4% q-o-q, the highest in 19 quarters.

Meanwhile, Infosys' revenues are expected to grow 10%-12% in constant currency and 11.5%-13.5% in rupee terms for the fiscal year ended March 31, 2016. In dollar terms, revenues are expected to grow 7.2%-9.2%, it added.

Among other IT stocks, HCL Technologies gained 4% to Rs 981, followed by Wipro and Tech Mahindra up 3% each at Rs 585 and Rs 514 respectively.

Tata Consultancy Services (TCS) was, however, trading flat at Rs 2,584.