IT shares in focus; Tech Mahindra, Mastek hits fresh 52-week high

SHARE MARKET of information technology (IT) companies were in focus with the Nifty IT index gaining nearly 2% after a strong gain in heavyweight stocks like Tata Consultancy Services (TCS), Infosys, HCL Technologies and Tech Mahindra.

At 10:07 am; Nifty IT index, the largest gainer among sectoral indices, was up 1.8% as compared to 1.06% rise in the Nifty 50 index. The S&P BSE IT index too up 1.9% against 1% rise in the S&P BSE Sensex. Tech Mahindra (up 2% at Rs 636) and Mastek (5% at Rs 557) have hit their respective 52-week highs on the BSE in intra-day trade today.

In past one month, the IT index has outperformed the market by surging 5% as compared to 2% decline in the benchmark indices. The mid-and-smallcap IT stocks like Mindtree, Hexaware Technologies, Sonata Software, Mastek and Zen Technologies have rallied more than 10% during the period.

As per an ICRA note, Indian IT Services companies are expected to register compounded annual growth rate (CAGR) in mid-to-high single digits for the period FY2017-2020 estimates.