D-Street Buzz: IT stocks gain led by Infosys; TCS, Wipro, NIIT Tech, Mindtree add 2% each

The Indian stock market continues trading in the green as investors clung on to hopes of a vaccine for COVID-19. Sensex is up 360.82 points or 1.02 percent at 35775.27, and the Nifty up 101.00 points or 0.97 percent at 10531.

Among the sectors, the IT index gained 2 percent led by gains from Infosys which jumped over 3 percent. It was one of the top index gainers. It was also one of the most active stocks on NSE in terms of value with 88,31,546 shares being traded at 11:45 hours.

The other gainers included NIIT Tech, Tata Consultancy Services, Wipro and Mindtree which gained 2 percent each.

Global research firm CLSA is of the view that investors should focus on outlook rather than results. It sees limited relevance of headline financials in Q1FY21 results adding that investors’ focus should be on order booking andrevenue decline, according to a report by CNBC-TV18.

The research firm further said that cost-structure deflation would be a long-term positive adding that Infosys and HCL Tech being the key picks. It expects 5-8 percent QoQ decline in dollar revenue for larger players in Q1.

S&P BSE IT gained over 2 percent. The top gainers included AXISCADES Engineering, Infibeam Avenue, eClerx Services, Mphasis, Ramco System, Zensar Tech and Zen Technologies among others.

Ashish Chaturmohta, Head of Technical and Derivatives, Sanctum Wealth Management has a buy recommendation on Tata Consultancy Services with target at Rs 2410. The stock has been correcting in narrow range for last few weeks. MACD line on the weekly chart has moved above the equilibrium level of zero on the weekly charts as well which indicates positive bias, he added.