D-Street Buzz: IT stocks trade higher; Infosys, Mphasis hit 52-week high, HCL Tech, Wipro gain

The Indian stock market gained on September 23 led by gains from Reliance Industries after the announcement that American buyout firm KKR & Co will invest Rs 5,550 crore in the company's subsidiary Reliance Retail Ventures in exchange for a 1.28 percent stake, the second deal stitched up by the Reliance Industries Ltd (RIL) unit in as many weeks.

Sensex is up 238.26 points or 0.63 percent at 37972.34, and the Nifty gained 66.80 points or 0.60% at 11220.50.

The Nifty IT index has jumped 27 percent year-to-date and 77 percent from March 23's low. Among the sectors, the IT index gained a percent led by Infosys and Mphasis which added 2 percent each followed by Wipro, HCL Tech, Coforge, Info Edge, L&T Infotech and Tech Mahindra.

Shitij Gandhi, Senior Technical Analyst at SMC Global Securities has a buy on TCS with target price at Rs 2,775. On the derivatives front, a long build-up in the prices has been observed which could trigger further upside momentum in the prices. Secondary oscillators are also showing positive divergences on the charts, he said.

The stocks among the IT names that hit 52-week high included Infosys, Mindtree, Mphasis and Hexaware Technologies.

Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services also feels IT will stand-out tall this year as one of the few sectors as far as Q2 earnings are concerned. Khemka feels these stocks ideas from the IT space are expected to do well in the short to medium term and recommends Infosys, Tech Mahindra, Wipro, Mindtree and Coforge.

The most active stocks on NSE in terms of value included TCS where 30,79,652 shares were traded followed by Infosys (58,65,387) and HCL Tech (57,77,002) shares.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

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