IT shares gain; TCS, HCL Tech near 52-week high

MARKET NEWS - http://www.business-standard.com/marketsShares of information technology (IT) companies were in focus with the Nifty IT and S&P BSE IT index gaining more than 2% in an otherwise range-bound market.

Tata Consultancy Services (TCS), Infosys, HCL Technologies, Tata Elxsi, Hexaware Technologies and Tech Mahindra were up in the range of 2% to 6%.

At 09:59 am; Nifty IT (10,895) and S&P BSE IT index (10,510) were up 2.2%, as compared to a marginal 0.08% decline in the benchmark indices.

In the past one month, the IT indices have outperformed the market by gaining 8% against 5% rise in the S&P BSE Sensex and 4.2% gain in Nifty 50 index.

TCS has rallied 4% to Rs 2,707 on the BSE in intra-day trade, quoting close to its 52-week high of Rs 2,740 touched on August 12, 2016. HCL Technologies was also up 3.3% at Rs 887, trading closer to its 52-week high of Rs 890 hit on March this year.

TCS’ buyback offer of about 56 million equity shares, which ended on May 31, received an overwhelming response. The offer was subscribed by 221% or 124 million shares. The company had fixed the buyback at price of Rs 2,850 a share.

HCL Tech buyback offer will commence from June 12 and will close on June 23, 2017. The company intends to buy back 35 million equity shares at Rs 1,000 a piece.

“The Buyback is being proposed by the Company to return surplus funds to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. It expected to contribute to the overall enhancement of the equity shareholders’ value, and result in an increase in the return on equity of the Company,” HCL Tech said in a statement.

Tata Elxsi has surged 7% to Rs 1,598, extending its Monday’s 10% rally on the BSE, after the company announced the licensing of its advanced autonomous vehicle middleware platform “Autonomai” to one of the world’s top 5 automotive OEMs (original equipment manufacturer) for their driverless car R&D.

"The Autonomai platform provides carmakers and Tier 1 automotive suppliers with a comprehensive and modular solution covering perception, GNC and drive-by-wire systems, to quickly build, test and deploy autonomous vehicles,” Tata Elxsi, a Tata Group company said in a press release.