Shares of top information technology companies are on song on Thursday, extending recent gains, following the rupee falling to a five-month low against the US dollar.
In fact, top IT shares have significantly outperformed the benchmark indices Sensex and the Nifty50 over the past one year, despite having suffered quite a few setbacks now and then.
On Wednesday, the rupee plunged 32 paise to hit a fresh five-month low of 65.31 against the US dollar, pushed by high crude oil prices and simmering geopolitical uncertainties.
Although the rupee has edged up slightly against the US dollar today, investors continue to lap up IT stocks ahead of expectations the top notch companies in the sector will come out with fairly good fourth quarter earnings reports.
Infosys is scheduled to announce its fourth quarter results tomorrow. More than the first quarter numbers, the market is looking ahead to the company' guidance for the full year and updates on new clients, orders and the long-term road map for the company from the new CEO Parekh.
The company had reduced its revenue growth guidance for financial year 2018. This time around, the market is expecting a fairly good revenue guidance for the current financial year.
Infoys, up 3.7% at Rs 1165, touched a high of Rs 1172.75 earlier in the session and looks poised to move past its 52-week high of Rs 1221.05 (touched on January 24 this year) sometime soon. On the National Stock Exchange, the Infosys counter has clocked a volume of nearly 6.5 million shares so far in the session today. On BSE, the counter has clocked a volume of 2.33 lakh shares so far in the day, as compared to average daily volume of 1.47 lakh shares.
Over the last one year, Infosys has gained about 21% as compared to Nifty50's gain of approximately 13%.
Tata Consultancy Services, which has gained nearly 30% in the last one year, is up 4,2% at Rs 3142. The stock had touched a 52-week high of Rs 3259.05 on 24 January 2018. On BSE, the TCS counter has clocked a volume of 8.82 lakh shares so far in the session today, as compared average daily volume of just around 44,000 shares.
HCL Technologies is trading 4.5% up at Rs 1011, and is not far behind its 52-week high of Rs 1040.70 touched on, you guessed it right, 24 January 2018. On BSE, more than 1.17 lakh HCL Technologies shares have changed hands so far in the session today, more than two times the average daily volume of 54,000 shares. In the last one year, HCL Technologies has gained about 21%.
Tech Mahindra (up 2.6% at Rs 651) touched a fresh 52-week high of R 653.30 earlier in the session. The stock has climbed 46% since mid April 2017.
MindTree is up with a modest gain at Rs 837, after touching a high of Rs 847 earlier in the day. The stock has gained as much as 86% in the last one year, more than four times the gains of the Nifty50 index and about 3.2 times the gains of the Nifty IT index.