D-Street Buzz: IT stocks rally; NIIT Tech, Infosys jump 6-8%, TCS, Wipro, HCL Tech gain

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The Indian stock market gained on June 26 boosted by gains from IT stocks. Sensex is up 219.48 points or 0.63 percent at 35061.58, and the Nifty gained 66.60 points or 0.65 percent at 10355.50.

Among the sectors, the IT index jumped over 4 percent after Accenture came out with better-than-expected quarterly numbers. The company reported an adjusted third-quarter profit of USD 1.90 a share, which beat the USD 1.85 average estimate of 22 analysts surveyed by Bloomberg.

The top gainers from the IT space included NIIT Tech which jumped 8 percent followed by Infosys which gained over 6 percent. The other gainers included Mindtree, Tata Consultancy Services, Tech Mahindra and Wipro.

The most active stocks on NSE in terms of value included Infosys where 1,39,40,230 shares were traded followed by TCS where 36,24,489 shares were being traded at 12:12 hours.

Global research firm Morgan Stanley is of the view that Accenture's Q3 revenue was ahead of estimates on continued growth in bookings adding that the company's expectations of stronger bookings in Q4 bodes well for Indian IT companies, according to a report by CNBC-TV18.

On the other hand, CLSA believes that Accenture management's commentary was assuring. The research firm also feels that the company's commentary is positive read-through for Indian IT companies.

S&P BSE IT jumped 5 percent intraday on June 26 Mastek, NIIT Tech and Nucleus Software which spiked 8-10 percent each. The other gainers included Intellect Design, L&T Technology, Mphasis, Oracle Financial Services, Sonata Software and Sasken Tech among others.

United States President Donald Trump had earlier issued a proclamation to suspend issuing of H-1B visas and other foreign work visas for the rest of the year. The proclamation that comes into effect on June 24, is expected to impact a large number of Indian IT professionals and several American and Indian companies who were issued H-1B visas by the US government for the fiscal year 2021 beginning October 1. As a result, IT stocks remained under pressure.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.