Technology stocks gained momentum on July 15 with the Nifty IT index rising nearly 3 percent outperforming other sectoral indices after Infosys surged during the day.
Infosys touched a record high of Rs 781.65, rising more than 7 percent, followed by Oracle Financial, Tech Mahindra, TCS and Mindtree that gained 1-3 percent. Wipro and HCL Technologies also traded higher with moderate gains.
Infosys raised its full-year constant currency revenue guidance to 8.5-10 percent after reporting revenue growth of 2.3 percent, which was better than its closest peer TCS (1.6 percent), though profit fell 6.8 percent sequentially.
Brokerages also raised price target on the stock, saying the risk-reward is favourable and guidance revision alluded company’s confidence in its pipeline and large deal wins.
The revised capital allocation to 85 percent from 70 percent earlier also turned positive for the stock.
Citi upgraded its rating on Infosys to buy and increased its price target on the stock to Rs 820 from Rs 785 per share saying while EBIT is in-line, deal wins and revenue guidance being raised are positives. Stock will likely rerate and discount to TCS will narrow, added Citi.