IT shares gain on strong Infosys Q3 results

Infosys, HCL Technologies, Tech Mahindra, NIIT Tech, Mphasis, R Systems and KPIT Tech were up 1%-5%.

Shares of information technology (IT) companies have recovered by up to 8% from their intra-day lows after the Infosys not only beat street estimates but revised its revenue guidance upwards. CLICK HERE TO READ FULL REPORT.

Infosys, HCL Technologies, Tech Mahindra and MindTree were trading higher and recovered more than 3% from their early morning lows on the National Stock Exchange (NSE).

Tata Consultancy Services (TCS) and Wipro however, down less than 1% and recovered more than 1% from day’s low.

At 12.13 a.m. Nifty IT index, the sole gainer among sectoral indices was up 1.5% or 162 points at 11,001 as compared to 0.30% decline in the Nifty 50 index.

The IT index down 155 points at 10,685 in early morning trade has recovered 330 points and touched a high of 11,014 post Infosys results.

Infosys, the largest gainer among IT pack, has rallied 5% to Rs 1,141, bouncing back 8% from intra-day low of Rs 1,054 on the NSE, after Infosys beat the street’s estimates with better than expected financial numbers for the quarter ended December 31, 2015 (Q3FY16).

The company reported 1.98% quarter on quarter (q-o-q) growth in consolidated net profit at Rs 3,465 crore for Q3FY16. Revenues grew 1.7% at Rs 15,902 crore on sequential basis.

Analysts on an average had expected profit of Rs 3,343 crore on revenues of Rs 15,735 crore for the quarter.

Infosys said that its revenue is expected to grow between 12.8%-13.2% in constant currency and 8.9%-9.3% in dollar term for the fiscal year ending March 31, 2016 (FY16).

Meanwhile, NIIT Technologies, Mphasis, R Systems International, KPIT Technologies, 8K Miles Software Services, Intellect Design Arena and Sasken Communication Technologies from non-index IT stocks trading higher between 2%-3% on the BSE.