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Infosys scales new high

The stock has rallied 10% in past seven trading days compared to 2.2% rise in S&P BSE Sensex and 4.6% gain in IT index.

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SI Reporter Mumbai
Last Updated : Jan 17 2014 | 11:17 AM IST
Infosys is trading higher by nearly 1% at Rs 3,758, also its new high on the BSE, even though most of the frontline information technology (IT) stocks are quoting lower by up to 5% on the bourses.

Tata Consultancy Services (TCS), Wipro, HCL Technologies and Tech Mahindra are trading lower in the range of 1-5% on the BSE. At 1100 hours, the BSE IT index is down 1.5% or 148 points.

Shares of Infosys, the country’s second-largest software services provider, has rallied about 10% in past seven trading sessions compared to 2.2% rise in benchmark S&P BSE Sensex and 4.6% gain in S&P BSE IT index.

Infosys had recorded a margin expansion of 150 bps quarter on quarter (qoq) in December quarter was ahead of street expectations. The company had also improved its revenue guidance for the financial year from 9-10% to 11.5-12%.

Increase in guidance suggests that management is incrementally positive about demand environment. Management commentary also turns positive on health of demand for Indian IT industry, says analyst at JP Morgan.

JPMorgan stay the stock to ‘overweight' with a target price of Rs 4,000 for December 2014.

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First Published: Jan 17 2014 | 11:15 AM IST

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