IT shares gain after robust FY17 revenue guidance from Infosys

The S&P BSE IT index was up nearly 3% as compared to 0.54% rise in the benchmark S&P BSE Sensex at 10:35 am.

Shares of information technology (IT) were trading higher on the bourses after Infosys, India’s second-largest information technology (IT) services firm forecast strong revenue growth of 11.5%-13.5% in constant currency (CC) in the current fiscal (FY17).

In dollar terms, the company expects revenue to grow between 11.8% and 13.8% for the fiscal year ending March 31, 2017, Infosys said in a statement.

At 10:35 am, Infosys was trading higher by 6% to Rs 1,244, after hitting a record high of Rs 1,268 on the BSE in early morning trade.

Cyient has rallied 8% to Rs 490, followed by MindTree (up 7% at Rs 739), SQS India BFSI (5% at Rs 967), NIIT Technologies (4% at Rs 511) and KPIT Technologies (3% at Rs 153).

HCL Technologies, Tech Mahindra, Mastek, NIIT, Geometric, R S Software, Hexaware Technologies and Mphasis were up between 1% and 2% on the BSE.

The S&P BSE IT index, the largest gainer among sectoral indices, was up nearly 3% or 318 points at 11,602 as compared to 0.54% rise in the benchmark S&P BSE Sensex.

Tata Consultancy Services (TCS) was however down nearly 2% at Rs 2,474 on reports that India’s largest information technology services provider has been slapped with a fine notice of $940 million (Rs 6,204 crore) by a federal jury in the US in a trade secret lawsuit.

Though the trial court has not given its final verdict yet, TCS said it plans to defend its position. It also stated that the jury verdict will not have any impact on its Q4 and FY16 financial results.

The board of directors of TCS will meet Monday, April 18, 2016, to take on record the audited financial results of the company for the year ended March 31, 2016.