TCS (Rs 2,273) and Infosys (Rs 754) touched a record high, gaining 4% on the BSE in intra-day trade. NIIT Technologies, KPIT Technologies, Mindtree, Wipro, Tech Mahindra and HCL Technologies were up in the range of 1% to 3% on the BSE.
At 12:29 pm; the S&P BSE IT index, the sole gainer from the sectoral indices, was up 2.7% as compared to 0.49% decline in the S&P BSE Sensex. The IT index hit a new high of 16,084 today, rallied 43% thus far in the current calendar year 2018 (CY18), against 5.8% rise in the benchmark index.
Among the individual stocks, TCS has rallied 68% thus far in CY18. The strong surge in the market price of the stock has seen the market valuation of TCS crossing Rs 8.5 trillion marks today. Currently, TCS market capitalisation has stood at Rs 8.64 trillion, the BSE data shows.
The brokerage firm Sharekhan maintains Buy rating on TCS with a revised price target of Rs 2,400, led by earnings upgrade (rupee reset) and rollover of a target multiple to average FY2020/FY2021E earnings.
“TCS is on track to achieve double-digit CC revenue growth in FY2019, given large deal ramp-ups, improving economy in developed markets and rupee depreciation. TCS is expected to deliver strong growth rates among its peers with revenue and earnings CAGRs of 13% and 14%, respectively, over FY2018-FY2021E,” the brokerage firm said in a recent note.