Infosys up 7%, market value surges Rs 9,836 cr

Software major and stock market heavyweight Infosys today shot up 7% on the bourses as investors cheered its second quarter earnings growth, up 9.72%, at Rs 1,906 crore.

Its scrip settled 6.83% up at Rs 2,680.50 on the Bombay Stock Exchange (BSE). Intra-day, the stock zoomed 7.2% to Rs 2,690.

On the National Stock Exchange (NSE), the scrip closed at Rs 2,681, up 7.05% from its last close.

The market value of the company, thus, spurted Rs 9,836 crore in just one trading session to Rs 1,53,915 crore.

The rally in Infosys shares helped the BSE benchmark Sensex close 2.55% higher at 16,958.39. Infosys alone contributed over 100 points to the Sensex.

"Infosys results and guidance were cheered by the market participants and the scrip became the best performer among the blue-chip companies," Inventure Growth and Securities Head Equity Amit Chheda said.

Ecohing a similar view, CNI Research CMD Kishore P Ostwal said: "Infosys numbers are better than street expectations and the stock may touch Rs 2,700 mark on value buying and short covering."

Rival IT stocks, including TCS and Wipro, too, ended with gain of 3.66% and 2.71% respectively.

Others like HCL Tech, Tech Mahindra and Mphasis also saw good buying and gained up to 4%.

Led by gains in these stocks, the BSE IT index settled 5.21% higher at 5,518.11.

The company had posted a net profit of Rs 1,737 crore for the September quarter of the previous fiscal (2010-11), Infosys said in a filing to the BSE.

The consolidated revenue of the country's second-largest software exporter rose to Rs 8,099 crore in the reporting period from Rs 6,947 crore in the year-ago period, translating into a 16.58% increase.