Infosys hits fresh record high; market cap nears Rs 4.5-trillion mark

So far in September, Infosys has outperformed the market by surging 13 per cent, as compared to 2.4 per cent decline in the S&P BSE Sensex

Shares of Infosys rose 3 per cent to hit a fresh record high of Rs 1,037 on the BSE on Wednesday, which saw the company's  market capitalisation (market-cap) near Rs 4.5 trillion mark. The stock surpassed its previous high of Rs 1,030.80, touched on September 21, 2020.

Since September 1, the information technology (IT) bellwether's stock outperformed the market by surging 13 per cent, as compared to 2.4 per cent decline in the S&P BSE Sensex. A sharp rally in Infosys stock has seen its market-cap rise by Rs 51,000 crore. At 10:45 am, Infosys' market-cap stood at Rs 4.40 trillion, 2 per cent away from the Rs 4.5-trillion mark.

Infosys, on September 15, said that a meeting of the board of directors of the Company will be held on October 13 and 14, 2020 to approve the audited consolidated financial results of the Company for the quarter and half year ending September 30, 2020 (Q2FY21). The board will also consider declaration of interim dividend, if any.

Infosys delivered strong beat on both revenue and margin front in its April-June quarter (Q1FY21) earnings. Deal wins and the deal pipeline both remains healthy. Brokerage firm Motilal Oswal expects further expansion in margins as investments stabilize and back-ended productivity benefits kick in.

Despite the COVID-19 disruption, IT saw limited impact on revenue, strong deal signings, and the closure of certain marquee deals (e.g., Vanguard – Infosys and Ericsson – HCLT). This led the street to rethink the resilience, adaptability, and terminal growth rates of the business model. In conjunction with the fall in risk-free rates, the sector witnessed decent multiple re-ratings across the board, the brokerage firm said in technology sector update.

Meanwhile, last week, HCL Tech has provided its mid quarter guidance wherein the company mentioned that they expect the revenue and the operating margin for Q2FY2021 to be meaningfully better than the top end of the guidance that the company had provided in July 2020.

The company in its release has highlighted that execution is strong during the quarter to date while deal momentum also remains strong led by Life Sciences & Healthcare, Telecom & Media and Financial Services verticals.