IT shares in demand; Infosys hits four-month high

Infosys, HCL Technologies, TCS, Wipro, Tech Mahindra and Persistent Systems are up between 1-2% on BSE.

Shares of information technology (IT) companies are in demand and trading higher by up to 3% on the Bombay Stock Exchange (BSE).

S&P BSE IT index, the second largest gainer among sectoral indices, is up 1.5% or 146 points compared to 0.61% rise in benchmark S&P BSE Sensex at 11:35 hours.

Among the individual stocks, Infosys has gained 3% to Rs 3,435 on BSE. The stock opened at Rs 3,351 and touched a high of Rs 3,465, its highest level since March 13 this year.

Analyst at Angel Broking maintains ‘buy’ rating on Infosys stock with a price target of Rs 4,207.

Former SAP executive Vishal Sikka has taken charge of Infosys and wants to focus on building on the core values of Infosys to further strengthen the company in the IT sector.

In terms of stock, we believe that the stock is currently trading at an attractive valuation at huge discount to TCS, on back of lower growth, which we believe will catch up in future, says analyst in a client note.

HCL Technologies too gained 3% to Rs 1,563 on the BSE after a credit rating firm upgraded the credit rating of the company in respect of the Secured, Non-Convertible Debentures of the company.

HCL Technologies said that CRISIL has upgraded the credit rating of the company in respect of the Secured, Non-Convertible Debentures of the company to CRISIL AAA/Stable from CRISIL AA+/Stable.

Tata Consultancy Services (TCS), Wipro, Tech Mahindra, Oracle Financial Services and Persistent Systems are among others from IT pack trading higher in the range of 1-2% on BSE.