Infosys, Wipro and Mindtree shares rose on Wednesday ahead of their quarterly earnings announcements. Tata Consultancy Services (TCS) shares also moved higher after two days of decline following its July-September financial results, which fell short of Street expectations.
Infosys shares were last seen trading 0.5 percent higher in morning deals. The Wipro stock was up 0.2 percent and Mindtree 0.5 percent. TCS shares were up 0.2 percent. Besides, Tata Elxsi, Birlasoft, L&T Tech and Coforge were also up, around one percent each, lifting the BSE IT index 0.4 percent.
Here's how the Infosys, Wipro and Mindtree shares have fared in the past year:
Infosys has rewarded investors with a return of 46 percent in the past year. Wipro and Mindtree's returns have stood at 76 percent and 171 percent respectively.
The IT space looks "very good" at the current juncture from a medium-term view, Rahul Singh of Tata Mutual Fund told CNBC-TV18. IT stocks can go through a phase of consolidation after the sharp run-up, he said.
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Singh does not expect any slowdown in tech earnings going forward.
The coronavirus crisis has turned the once defensive IT sector of the Indian market into a major driving force, brokerage Ventura Securities said in a note recently.
Until a few years ago, IT was considered as an export-driven, value-oriented defensive sector in the country, with tech giants such as TCS, Infosys, Wipro and HCL Tech well-known for their ability to generate free cash flows, it said.