IT stocks gain up to 4% in early trade
Mumbai: IT stocks on Thursday rose by up to 4 percent in early trade after the US-based Cognizant posted 16.6 percent rise in net profit for the January-March quarter and maintained its outlook of 17 percent revenue growth in 2013.
Shares of TCS jumped 1.73 percent, while Infosys climbed 0.78 percent on the BSE.
HCL Tech surged 3.92 percent, Wipro (0.37 percent) and Tech Mahindra (0.27 percent).
Following the gains in these stocks, the BSE IT index was trading at 6,066.35, up nearly 1 percent and was the top gainer among the 13 sectoral indices.
Driven by strong demand from Europe, IT firm Cognizant yesterday posted 16.6 percent rise in net profit at USD 284.2 million for the January-March quarter and maintained its outlook of 17 percent revenue growth in 2013.
Cognizant's net profit stood at USD 243.7 million in the first quarter of 2012. The US-headquartered IT services provider follows January-December fiscal.
The US-based firm's revenues increased 18.1 percent to USD 2.02 billion in the quarter from USD 1.71 billion in first quarter, 2012, in line with its outlook of at least USD 2 billion.
For the second quarter (April-June) of 2013, Cognizant expects its revenues to be "at least USD 2.13 billion" and has maintained its outlook for revenues to grow at 17 percent to "at least USD 8.6 billion".
Meanwhile, in the stock market, the BSE benchmark Sensex was trading at 19,952.76, down 37.42 points in late morning trade.