HCL Tech's mid-quarter guidance optimism sparks rally in TCS, Infosys, Wipro, and Tech Mahindra too
- HCL Technologies’ stock was trading over 10% in afternoon trade today after the IT services giant announced its mid-quarter review.
- It issued a revenue growth guidance of 3.5% and EBIT of between 20.5% to 21% this quarter.
- The rally led to the share price of other bigwig IT stocks — Tata Consultancy Services (TCS), Infosys, Wipro and Tech Mahindra — to also shoot up by at least 3%.
AdvertisementIndian IT services giant HCL Technologies’ mid-quarter review and guidance haveIT stocks rallying to new highs even as the COVID-19 uncertainty continues to loom. The company expects its revenue growth to be around 3.5% for this quarter, after reporting a dip of 7.2% at the end of June.
HCL Tech’s own share price shows the biggest jump, rallying by over 10% in afternoon trade on the Bombay Stock Exchange.
In the rally led by HCL Tech, the other top 5 Indian IT stocks — Tata Consultancy Services (TCS), Infosys, HCL Tech, Wipro, Tech Mahindra, and L&T Infotech — followed suit, shooting up by at least 3%.
The boon for the even greater for TCS as the sudden rise took it to become the second Indian company to cross the ₹9 lakh crore mark after Mukesh Ambani's Reliance Industries crossed the same threshold in October last year.
Source: BSE as of 1:30 pm on September 14
|Company||% change (trade today)|
|Tata Consultancy Services (TCS)||3.26%|
HCL Tech’s mid-quarter review
In the first three months of the current financial year, April to June, HCL Tech signed 11 new deals even though the number of large clients it has on its payroll did not increase.
HCL's 7.2% fall in revenue is also greater, compared to its peers, who were also in the red but by a lesser margin.
“Good booking momentum continues this quarter, led by Life Sciences & Healthcare, Telecom & Media and Financial Services verticals,” HCL Tech said in its filing with the BSE, adding that the pipeline continues to look healthy.
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