Share price of IT major Infosys hits record high, goes up by 15 percent

Share price of IT major Infosys rose nearly 15 percent to hit its record high of Rs 955.50 on Thursday after the firm's earnings beat street estimates. The street also cheered the FY21 revenue guidance issued by the firm. It was the first firm in the IT sector to do so in the June quarter. The stock ended 9.5 percent higher. The rise in Infosys stock lifted the Nifty IT index up over 5 percent in intraday but later pared some gains to settle nearly 3 percent higher. The company had not provided any projections in the March quarter, citing COVID-19-related uncertainty.

Infosys reported a profit of Rs 4,233 crore for the June quarter. Analysts had projected the figure at Rs 3,950 crore.The company had reported a net profit (before minority interest) of Rs 3,802 crore in the corresponding quarter last year, it said in a BSE filing. Its revenue grew 8.5 percent to Rs 23,665 crore in the quarter under review from Rs 21,803 crore in the corresponding period last fiscal, it added.

Another brokerage Motilal Oswal also raised its target price on Infosys to ₹1,050. Domestic brokerage Edelweiss has upgraded it target price on Infosys to ₹1,080, from ₹950 earlier, reiterating its "buy" call. The other prominent gainers were Bharat Petroleum Corporation, Mahindra & Mahindra, IndusInd Bank and JSW Steel. However, Bharti Infratel dived by 7 per cent to close at Rs 189.60 per share while Tech Mahindra, ITC, IndianOil Corporation, Coal India and NTPC traded with a negative bias.