Infosys shares hit record high at Rs 1,860, stock up 47% this year

This is in line with the overall performance of the Nifty IT index, which has gained over 40 percent this year.

In comparison, benchmarks Nifty 50 and Sensex have risen about 20 percent so far this year.

Even during market volatility last week, technology stocks largely held on to gains or saw minor losses.

The exuberance in the space is coming on the back of positive demand outlook for the sector, especially after Accenture reported strong earnings and raised its guidance for the full year.

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Its commentary on broad based demand and record high bookings should be seen as an indication of the stickiness in the demand environment for IT Services, analysts said.

Infosys had also raised its FY22 revenue growth guidance to 16.5-17.5 percent in constant currency from 14-16 percent due to healthy demand, deal intake and deal pipeline.

In a report dated December 21, Sharekhan said Infosys is among the best-placed companies to benefit from strong demand backed by its strategic investments in scaling up digital capabilities, gaining market share and expanding presence in Europe.

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“Infosys is well placed to report industry-leading growth among Tier-IT companies in the medium term on account of broad-based traction across industries, earlier investments in emerging technology areas, gaining market share, strong growth in the digital business, and targeting a large pie of client’s IT budget,” the brokerage said.

It has maintained a “buy” on the stock with a target price of Rs 2,050.