D-Street Buzz: IT stocks gain led by TCS, HCL Tech; Ramco Systems surges 20% upper circuit

The Indian stock market continues trading in the green with Sensex up 155.17 points or 0.46 percent at 34111.86, and the Nifty added 38.80 points or 0.39 percent at 10085.50.

The IT index gained over half a percent with Nifty IT up 0.6 percent led by Tata Consultancy Services which is of the top index gainer.

Indian rupee is trading higher by 15 paise at 75.46 per dollar, amid buying seen in the domestic equity market. It opened 11 paise higher at 75.50 per dollar on Wednesday against previous close of 75.61.

Global research firm Morgan Stanley has an equal-weight rating on the stock with target at Rs 1,780 per share. It is of the view that second-order impact could come in the next few quarters, according to a report by CNBC-TV18.

Morgan Stanley is of the view that margin is likely to be under pressure for the next two quarters. TCS expects to gain market share as it emerges from this crisis.

The other gainers included HCL Tech which added 2 percent followed by Info Edge, Mphasis, Tech Mahindra and Wipro.

S&P BSE IT added almost a percent led by Ramco Systems which surged 20 percent upper circuit of Rs 91.90 per share. It was the top BSE smallcap gainer. This was followed by TVS Electronics, HCL Infosystems, Expleo Solution, D-Link India, Hinduja Global, 63 Moons Tech and 3i Infotech among others.

Manali Bhatia, Senior Research Analyst at Rudra Shares & Stock Brokers recommends buying Tech Mahindra with target at Rs 630 per share. Positive crossover of short term and medium term moving averages are a ray of hope for bulls suggesting that the counter is getting ready for the trend reversal, she said.