IT stocks extend Friday's gain

Nine IT stocks were up 0.27% to 2.98% at 09:57 IST on BSE, extending Friday's gain triggered by Infosys raising its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014.

Hexaware Technologies (up 1.32%), Polaris Financial Technology (up 2.98%), Oracle Financial Services Software (up 0.27%) and MphasiS (up 0.8%) gained

HCL Technologies gained 1.99% to Rs 1,325.05 after hitting a record high of Rs 1,330 in intraday trade.

TCS rose 1.79% to Rs 2,322.75 after hitting a record high of Rs 2,330 in intraday trade.

Wipro gained 2.06% to Rs 566 after hitting a 52-week high of Rs 567.45 in intraday trade.

Tech Mahindra advanced 1.12% to Rs 1,902.85 after hitting a 52-week high of Rs 1,905.95 in intraday trade.

Infosys surged 2.96% to Rs 3,654 after hitting a record high of Rs 3,660 in intraday trade

The S&P BSE IT index was up 2.15% at 9,513.94 and was the top gainer among the sectoral indices on BSE. The index outperformed the S&P BSE Sensex, which was up 1.29% at 21,026.15.

The BSE IT index had outperformed the market over the past one month till 10 January 2014, rising 7.78% compared with the Sensex's 2.34% fall. The index also outperformed the market in past one quarter, gaining 12.8% as against Sensex's 2.4% rise.

IT stocks gained across the board on Friday, 10 January 2014 with Infosys gaining 2.84% to settle at Rs 3,548.90 after the company raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014 (FY 2014).

Infosys' consolidated net profit jumped 19.4% to Rs 2875 crore on 0.5% increase in revenues to Rs 13026 crore in Q3 December 2013 over Q2 September 2013. The results are as per International Financial Reporting Standards (IFRS). The strong sequential growth in the company's bottom line was due to base effect - Infosys' bottom line in Q2 September 2013 was hit adversely due to a provision of Rs 219 crore during that quarter for one-off visa costs. A sharp surge in non-operating income also aided the growth in bottom line. Non-operating income jumped 43.3% to Rs 731 crore in Q3 December 2013 over Q2 September 2013.

Infosys raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014. The company expects consolidated revenue in rupee terms to grow 24.4% to 24.9% for the fiscal year ending 31 March 2014 (FY 2014). This guidance is based on rupee dollar conversion rate of 61.81 for the rest of the financial year. The company expects consolidated revenue in dollar terms to grow 11.5% to 12% in FY 2014.

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