The scrip of Infosys, the second largest stock in terms of weightage in the Sensex, was up by 6.8 per cent on Wednesday. The index heavyweight with a weightage of 9.04 per cent in the Sensex, single-handedly managed to tide over the disappointing IIP numbers to move the markets up on the back of its better-than-expected results.
The Infosys scrip ended the day at Rs 2680.50 per share on the BSE. It had closed on Tuesday at Rs 2509.20. On the NSE, the scrip rose by seven per cent to end the day at Rs. 2681 per share. The previous close for the scrip was Rs 2,504.55.
According to IT analysts, rupee depreciation as well as increase in volume growth is expected to see the industry to better the Q1-FY12 results. They say that the positive outlook after Infosys' results would spill over to the entire sector. The BSE IT index was the best performer of the day, up by 5.21 per cent. The sector, during the September quarter, had seen returns of a negative 14 per cent. But that is set to change this quarter, say analysts.
The IT sector, market experts say, is merely catching up with what has been already happening in the developed markets. “Cognizant, which is not listed in India, has been giving consistently good results for the past ten quarters. The IT sector will be an outperformer in India as it will be catching up with what is happening to the sector globally,” said Mr R L Narayanan, Vice-President- Equity & Institutional Sales, Bonanza Portfolio.
TCS results are expected to be better than that of Infosys, according to IT analysts.
All IT stocks in the BSE IT index were up, except for Patni Computers which was marginally down by 0.31 per cent. The second best performing stock was HCL Tech which was up by 4.29 per cent, followed by Mphasis which was up 3.98 per cent and TCS up by 3.66 per cent. Wipro was up by 2.71 per cent.