The Indian stock market continued to hold on to the morning gains well into the afternoon, with the Sensex trading 352.93 points, or 0.7 percent, higher at 50,990.46, and the Nifty was up 90 points, or 0.59 percent, at 15298.50.
Among the sectors, the IT index added over a percent led by Coforge, Infosys and Wipro, which gained 2-3 percent each. The other gainers included Mindtree, Mphasis, TCS and Tech Mahindra.
According to Likhita Chepa, Senior Research Analyst, CapitalVia Global Research, the market was able to regain momentum in the first half of the market and was sustaining above 15,200. If it holds the level, the Nifty market may gain momentum, leading to an upside projection to 15,350-15,400.
According to a report by HDFC Securities, the IT sector performance was largely in line but the details are more interesting. While mid-tier growth outpaced tier-1 IT, tier-1 outperformance was led by TCS and Wipro in revenue and Infosys in margins. Mid-tier firms had stronger pockets of outperformance with the top scorers posting almost double-digit sequential growth.
“Following 10 percent earnings growth in FY21, we expect the sector to deliver 15 percent CAGR as revenue accelerates to 15 percent in FY22E and then normalises to 11 percent in FY23E,” the report said.
HDFC Securities also downgraded Tata Elxsi and Persistent Systems to “add” from “buy “while remaining constructive on the sector. Its preferred picks include Infosys, HCL Tech, Mphasis, L&T Infotech and Sonata Software.
Shitij Gandhi, Senior Technical Analyst at SMC Global Securities, has a “buy” on Tech Mahindra with the target price of Rs 1,060. “The breakout can be seen with rising volumes. Prices are holding well above their short and long-term moving averages as well. Traders can accumulate the stock in the range of Rs 980-993 for the upside target of Rs 1,060 with a stop loss below Rs 935,” he said.
Real estate stocks were also on a roll, with the index gaining over 2 percent led by DLF, Indiabulls Real Estate, Prestige Estates, Sunteck Realty and Phoenix Mills, which jumped over 4 percent each.
Over 300 stocks hit new 52-week high on BSE, including Sonata Software, Birlasoft, Wipro, Mphasis and Persistent Systems. Over 450 stocks hit the upper circuit on BSE. These include Suzlon Energy, Hikal, Angel Broking, Unitech, Mercator, Jaypee Infra, Andhra Cements, Kirloskar Brothers and HCL Infosystems.
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