Shares of Infosys fell nearly one percent on Tuesday as investors cashed in on their recent gains. The scrip has gained over 36 percent in 2021 so far.
Analysts believe information technology stocks are likely to sustain their premium valuations as the demand scenario for the sector remains robust in the wake of digitisation.
Overall demand commentary is positive with all companies expecting accelerated growth over the next 3-5 years while deal pipelines remain near all-time highs, Jefferies India said in its report lately.
However, most companies believe supply pressure to persist over the next 2-3 quarters which could make the operational performance of technology companies volatile, Jefferies added. The top picks for the foreign brokerage firm remain Infosys and HCL Technologies.
The company said it has almost completed its buyback programme and its buyback committee will meet on September 8 to consider the closure of the buyback programme.
At 1018 IST, shares of Infosys were trading one percent lower at Rs 1,712.50 on BSE.