Sensex reclaims 51,000 mark, ends 584 points higher; banks, IT stock lead gains
The top laggards included PowerGrid, ONGC, NTPC and Dr Reddy's were among the laggards.
Stronger-than-expected earnings from the IT major Infosys pushed its share prices to a record high during the early trading hours on the BSE. Infosys on Wednesday reported 12.4 per cent rise in the first quarter consolidated net profit to Rs 4,272 crore, winning investors confidence despite the pandemic-hit market.
Shares of Infosys jumped 14.49 per cent to its one-year high of Rs 952 on the BSE during the early hours. However, during the intraday trade they lost their certain gains and were up by 10.43 per cent at Rs 918.20.
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Similarly on the NSE, company’s shares were trading at Rs 918.95 up by 10.95 per cent, after it touched its 52-week high of 14.98 per cent at Rs 955.50.
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It was the biggest gainer on the BSE 30-share Sensex and NSE 50-share Nifty.
“Infosys’s results beat estimates substantially (revenue/margins), but the key positive is the reiteration of revenue guidance growth of 0-2 per cent for FY21,” according to a report by Edelweiss Research.
Infosys on Wednesday, while present is first quarter results said, its FY21 revenue is likely to grow by up to 2 per cent.
The Bengaluru-based company was successful to maintain its first quarter profits as it had received help in form of some mega deals. It included deal wins worth $1.7 billion during the quarter, which resulted in over 25 per cent growth of its digital revenues to $1.38 billion (44.5 per cent of total revenues).
The company had posted a net profit (before minority interest) of Rs 3,802 crore in the June 2019 quarter. Revenue grew 8.5 per cent to Rs 23,665 crore in the quarter under review from Rs 21,803 crore in year-ago period.
While COVID-19 pandemic still presents challenges, the company is reinstating its guidance for the full financial year at 0-2 per cent in constant currency terms, Infosys CEO and Managing Director Salil Parekh said.
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