IT shares trade firm post TCS Q1 results

TCS, Wipro, HCL Tech, Tech Mahindra, Persistent Systems , R S Software, Mastek, Rolta India and Cyient are up 1-5% on the National Stock Exchange.

Shares of information technology (IT) companies are in demand and trading higher by up to 5% after reporting better than expected net profit for the quarter ended June 2014 (Q1).

Tata Consultancy Services (TCS), Wipro, HCL Technologies, Tech Mahindra and Persistent Systems from the frontline IT stocks are up 1-4%, while R S Software,  Mastek, Zensar Technologies, Rolta India, Infotech Enterprises and Polaris Financial Technology have gained between 2-5% on the National Stock Exchange (NSE).

CNX IT index, the largest gainer among sectoral indices, was up 1.8% at 9,998 points compared to 0.21% rise in CNX Nifty at 1330 hours.

TCS was trading higher by 3% at Rs 2,459 after reporting a better-than-expected consolidated net profit of Rs 5,058 crore for the quarter ended June 2014 (Q1).

Analysts, on an average, had expected profit of Rs 4,885 crore for the quarter. The company had reported a profit of Rs 5,297 crore in the March 2014 quarter.

Analyst at Barclays India retains overweight rating on the stock with price target of Rs 2,730.

Cyient (formerly Infotech Enterprises) surged 5% to Rs 353 after reporting net profit of Rs 69 crore against analyst expectation of Rs 64 crore during the recently concluded quarter.

Wipro too up 3% at Rs 553 after the company announced that it has entered into a strategic alliance with Alberta-based ATCO, one of Canada's premier corporations.

The arrangement is projected to result in revenues of over CAD 120 million ($112 million) to Wipro annually, for the next ten years, up to December 2024, Wipro said in statement.