Technology pack gains; BSE IT index up 1%

IT majors gain between 0.5-3% after Cognizant posted better-than-expected numbers in the fourth quarter

Shares of IT majors have gained between 0.5-3% on the BSE after IT services company Cognizant on Wednesday posted better-than-expected numbers in the fourth quarter as well as the accounting year ended December 31. It gave a robust growth forecast for the next year. Further, a depreciating rupee bolstered the technology pack.

The Nasdaq-listed IT services company, which follows an offshore delivery model like Indian players’, reported 16 per cent growth in revenues for the year, ahead of the upper end of its forecast of 14.7-14.9. It projected its FY15 revenue to grow 19 per cent to touch $12.21 billion.

For the quarter ended December (its fourth quarter), Cognizant reported 11.6 per cent growth in its net profit to $363 million year-on-year. Sequentially, it grew two per cent. The revenues at $2.74 billion grew 16.4 per cent from the year-ago quarter while sequentially it increased 6.2 per cent.

TCS, HCL Tech, Wipro, Tech Mahindra, Infosys and Mindtree are trading higher between 0.5-2% on the BSE.

Meanwhile at 11.20 AM, the Sensex is up 160.74 points or 0.5% at 29,043.85 levels and BSE IT index is quoting at 11397.91 up by 112.89 points or 1%.