TCS, Wipro to Infosys: Why IT shares are skyrocketing today — explained
Stock market today: After declaration of improved margins, attrition rate and order inflows during April to June 2023 quarter by Tata Consultancy Services (TCS) and ease in US dollar following ease in US CPI data, Indian IT stock witnessed heavy buying interest in early morning deals. TCS share price ascended ascended to the tune of 3 per cent in early morning session, Infosys shares went up around 3 per cent while Coforge share price added around 2.50 per cent during morning deals.
On why IT stocks are rising today, Vaibhav Kaushik, Research Analyst at GCL Broking said, “IT stocks are rising due to two major reasons — strong TCS Q1 results and US CPI data hitting two year low. But, major reason is TCS results as the Indian IT major has managed to log improvement on order book intake, margins and attrition front, which was under scanner of majority of Indian equity investors. This strong Q1 result has triggered buying interest in TCS shares and market is expecting same kind of numbers from Wipro and Infosys as well.”
On how US CPI data is going to impact India IT companies, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “After ease in US CPI data, dollar price has gone down that means Indian It company’s charges in the international markets would go down. As Indian IT companies are mainly in service exports, this slide in US dollar may spark order inflows positively and hence, this is also going to impact Indian IT companies positively.
TCS share price target
Vaibhav Kaushik of GCL Broking said that after TCS results in first quarter of the current financial year, TCS share price has formed a new band of ₹3200 to ₹3750 and any dip from current levels should be taken as buying opportunity by positional long term investors.” He advised TCS share holder to hold the stock with stop loss at ₹3200 but advised fresh investors to wait for the management guidance.
TCS Q1 results 2023
Information Technology (IT) services major, Tata Consultancy Services (TCS) Ltd on Wednesday reported 16.84 per cent YoY rise in its consolidated net profit (attributable to shareholders of the company) for the fiscal’s first quarter ended June (Q1FY24) to ₹11,074 crore. The company had reported a profit of ₹9, 478 crore in the year-ago period. Sequentially, the consolidated net profit was down 2.8%.
Wipro results Q1 2023
After TCS and HCL Tech, market is expecting Q1 results today from other Indian IT major Wipro Ltd. Fourth largest Indian IT company is widely expected to report a weak quarter in line with the industry peers, witnessing a sequential decline in revenue and operating margin.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 13 Jul 2023, 11:22 AM IST
