IT shares surge higher; TCS, Infosys, HCL Tech touch 52-week high

New Delhi: Shares of information technology companies surged in the morning trade even as the broader market was trading with marginal gains. The BSE Information Technology index was trading with gains of 1.54 per cent at 12213.70. It touched a high of 12,272.23 points.

The BSE Teck index also surged to a high of 6,820.44, registering a jump of 1.61 per cent in morning trade. The index was quoted at 6,784.92, up 1.08 per cent at 1052 hrs. Meanwhile, the 30-share benchmark index Sensex was trading with gains of 0.35 per cent at 34,891.41 points.

The leading IT companies like Infosys, Tata Consultancy Services (TCS), HCL Technologies and Tech Mahindra registered gains of as much as 3 per cent on the BSE. Infosys surged 3.30 per cent to touch a 52-week high of Rs 1,160, registering a surge in its shares price for the eighth consecutive session.

TCS also hit a new high of Rs 2925.00. Similar was the case HCL Technologies also which touched its 52-week high of Rs 962.70. Meanwhile shares of Tech Mahindra touched a high of Rs 564, up 1.11 per cent over its previous closing price. Morgan Stanley in a research note has said that the Indian IT services stocks are set for a turnaround in 2018 as recovery in spending is "imminent".

According to the global financial services major, a turnaround in IT spending could quickly turn sentiment on these stocks. Though the sector faces risks from automation and a slower pace of market share gains from global vendors, a cyclical rally could be in the offing, it added.