IT stocks surge; Wipro jumps 10%, Infosys gains 3% ahead of Q1FY21 results

Shares of information technology (IT) companies rallied up to 10 per cent on the NSE on Wednesday, a day after posted better-than-expected numbers for the first quarter (April-June) of the financial year 2020-21 (Q1FY21).

At 09:29 am, the Nifty IT index was ruling nearly 3 per cent higher at 16,069.05 points with 9 out of 10 constituents trading in the green. was the top gainer on the index – hitting an upper circuit limit of 10 per cent at Rs 247.50. Other constituents of the index such as NIIT Tech, Tech Mahindra, Infosys, and HCL Tech gained up to 4 per cent. In comparison, the benchmark Nifty was trading over 1 per cent higher at 10,727.50 levels.

In its result announcement on Tuesday, said some of its verticals have started witnessing green shoots though the Bengaluru-headquartered company refrained from giving any guidance on revenue front for the second consecutive quarter. The company’s profit before tax (PBT) grew 0.75 per cent at Rs 3,095.3 crore, compared to Rs 3,072 crore reported a year ago. In sequential terms, it grew 4.4 per cent. Operating margin expanded by 140 basis points (bps) at 19 per cent in Q1 of FY21 over the previous quarter on the back of rupee depreciation and operational improvement. CLICK TO READ FULL REOPORT

Meanwhile, Salil Parekh-led is scheduled to announce its June quarter results later in the day. Improvement in decision making & discretionary spend, deal pipeline, key impacted verticals, the magnitude of pricing pressure, and revival trend are some of the key events to watch out for. READ MORE

Besides, the IT major on Tuesday said it has partnered with investment management company Vanguard whereby it will manage certain activities of the US firm. Through the partnership, will assume day-to-day operations supporting Vanguard’s DC (type of retirement plan) recordkeeping business, including software platforms, administration, and associated processes, a statement said.

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