The Indian stock market managed to edge higher amid volatility on October 19, with the Sensex trading 414.32 points, or 0.67 percent, up at 62179.91 and the Nifty adding 99.30 points, or 0.54 percent, at 18,576.30 in the afternoon trade.
Among the sectors, the IT index jumped 3 percent led by L&T Infotech that surged over 15 percent followed by Tech Mahindra, Mphasis, Oracle Financial Services and Coforge which jumped 5-7 percent each.
Larsen & Toubro Infotech was in focus after its Q2FY22 profit rose 11.1 percent to Rs 551.7 crore from Rs 496.8 crore in the June quarter. Its rupee revenue was up 8.8 percent at Rs 3,767 crore versus Rs 3,462.5 crore, QoQ.
The earnings before interest and tax rose 14.1 percent at Rs 648.2 crore and the margin was up at 17.2 percent, QoQ.
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Despite reporting a good set of numbers, global brokerage firm Morgan Stanley has kept “underweight” call on the stock, citing unfavourable risk reward.
It, however, raised the target price to Rs 5,500 from Rs 5,150 after the company reported a strong beat on revenue.
Citi has maintained “sell” rating and raised the target price to Rs 5,180 from Rs 4,770. It was a strong Q2 with revenue ahead of expectations. The growth is broad-based and largely driven by small and mid-sized deals, the brokerage firm said.
In the last one month, the IT index has gained around 5 percent, underperforming the Nifty which added over 6 percent.
Earlier, heavyweight Tata Consultancy Services reported a consolidated net profit of Rs 9,624 crore for the second quarter of 2021-22, registering a 14.1 percent on-year growth.
Wipro saw its quarter-on-quarter consolidated net profit drop 9.6 percent to Rs 2,930.7 crore for the quarter ended September 2021 due to contraction in margins after wage hike and amortisation charge on Capco acquisition.
Among the IT names, share price of L&T Infotech hit new 52-week high followed by L&T Tech, Oracle Financial Services, Mphasis, Sonata Software, Dixon Tech, Tech Mahindra, Cyient, Coforge, Tata Elxsi and Infosys.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.