HCL Tech climbs on launching global delivery centre in US

HCL Technologies rose 0.96% to Rs 612.85 after the IT major on Tuesday announced that it will open a global delivery centre (GDC) in Hartford, the capital city of the US state of Connecticut.

The new facility will offer digital transformation services to clients in the smart manufacturing, insurance, aerospace and defence industries, HCL said.

With the GDC, HCL said it will invest in the area and create local jobs with the help of a strong ecosystem regionally and at the state level.

The first anchor client for the GDC will be Stanley Black & Decker, a diversified global industry that operates the world''s largest tool company, which signed a significant global agreement with HCL.

HCL said it will bring advanced digital capabilities and help transform Stanley Black & Decker''s global application and infrastructure environments to enhance the company''s agility and ability to respond to emerging business needs.

As part of the deal, HCL will ramp up to deploy 1,000 people globally for Stanley Black & Decker.

Meanwhile, HCL Technologies during market hours on Tuesday announced a new large contract with New Zealand dairy co-operative Fonterra to modernise and manage the entire technology infrastructure Fonterra employees around the world use every day.

The multi-year partnership with HCL Technologies will consolidate Fonterra's technology suppliers and bring together the Co-op's IT infrastructure services under one umbrella. The technology edge services provided by HCL will enhance Fonterra's employee experience, to navigate through their business operations.

On the technical front, the stock's RSI (relative strength index) stood at 57.316. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading between its 5-day moving average (DMA) placed at Rs 613.08 and its 10-DMA placed at Rs 610.25.

HCL Technologies' consolidated net profit rose 8.59% to Rs 2,944 crore on a 3.46% rise in net sales to Rs 18,135 crore in Q3 December 2019 over Q2 September 2019.

HCL Technologies is engaged in providing a range of software development services, business process outsourcing services and information technology (IT) infrastructure services. The firm's segments include software services, infrastructure management services and business process outsourcing services.

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