TCS, Wipro to Infosys: Why IT shares are skyrocketing today — explained
Stock market today: After declaration of improved margins, attrition rate and order inflows during April to June 2023 quarter by Tata Consultancy Services (TCS) and ease in US dollar following ease in US CPI data, Indian IT stock witnessed heavy buying interest in early morning deals. TCS share price ascended ascended to the tune of 3 per cent in early morning session, Infosys shares went up around 3 per cent while Coforge share price added around 2.50 per cent during morning deals.
On why IT stocks are rising today, Vaibhav Kaushik, Research Analyst at GCL Broking said, “IT stocks are rising due to two major reasons — strong TCS Q1 results and US CPI data hitting two year low. But, major reason is TCS results as the Indian IT major has managed to log improvement on order book intake, margins and attrition front, which was under scanner of majority of Indian equity investors.
This strong Q1 result has triggered buying interest in TCS shares and market is expecting same kind of numbers from Wipro and Infosys as well." On how US CPI data is going to impact India IT companies, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "After ease in US CPI data, dollar price has gone down that means Indian It company's charges in the international markets would go down. As Indian IT companies are mainly in service exports, this slide in US dollar may spark order inflows positively and hence, this is also going to impact Indian IT companies positively. Vaibhav Kaushik of GCL Broking said that after TCS results in first quarter of the current financial year, TCS share price has formed a new band of ₹3200 to ₹3750 and any dip from current levels should be taken as buying opportunity by positional long term
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