Software stocks rise despite market concerns

Shares of Tech Mahindra Ltd., a large cap software developer, rose to a one-month high on Tuesday after the company reported earnings that beat street expectations.

Tech Mahindra, a part of the larger M&M group, said its first quarter Net Profit rose 43 percent to 676 crore rupees compared with 472 crore rupees in the previous three months. Sales during April-June gained 3 percent to 6,294 crore rupees from 6,117 crore rupees during January-March.

Tech Mahindra rose 2 percent, or 10.15 rupees, to 529.70 rupees, its highest since June 26, on the National Stock Exchange, where 29.8 lakh shares were traded in the first hour of trade compared with the 5-day average of 29.5 lakhs.

Tech Mahindra's market capitalisation has dipped 4.2 percent in the past one year to 50,000 crore rupees as the company cautioned against a slow down in business from some of its clients.

(Image credits: Indiatimes)