Mumbai: Shares of Infosys rose sharply by 11 percent Tuesday, adding Rs 25,439.55 crore to its market valuation, after the IT major reported better-than-expected 5 percent rise net profit for the June quarter and raised its full-year sales growth forecast.
The blue-chip stock surged 11.05 percent to settle at Rs 1,112.65 on the BSE. During intra-day trade, it had zoomed 12.56 percent to Rs 1,127.75.
At the NSE, shares of the company climbed 11.12 percent to Rs 1,112.65 at close.
Tracking the sharp rally in the stock, the company's market valuation surged Rs 25,439.55 crore to Rs 2,55,569.55 crore. With this, the company also surpassed ITC and ONGC in the market valuation chart.
The stock was the top gainer on both the key indices Sensex and Nifty.
In terms of volume, 14.18 lakh shares of the company changed hands at the BSE and over one crore shares were traded at the NSE during the day.
Dipen Shah, Head of Private Client Group Research at Kotak Securities said Infosys' results beat estimates on the revenue front.
"The highlight of the results was the strong constant currency revenue growth of 4.4 percent, led by volume growth of 5.4 percent. The volume growth was the best in the past 19 quarters," he said.
Infosys Ltd today reported better-than-expected 5 percent rise in June quarter net profit and raised its full-year sales growth forecast as business revamp helped it win more IT contracts.
The nation's second-largest outsourcing company reported consolidated net profit of Rs 3,030 crore, or Rs 13.26 per share, in the April-June quarter as against Rs 2,886 crore, or Rs 12.63 per share in the same period a year ago.
"Infosys reported a robust growth in its revenue and beat all market expectations," said Achin Goel, Head Wealth Management & Financial Planning, Bonanza Portfolio Ltd.
The firm raised sales forecast for the financial year ending March 31, 2016 to 7.2-9.2 percent in US dollar terms. The growth projection made in April was 6.2-8.2 percent.
The consolidated revenue grew 12.4 percent in the first quarter of the current fiscal to Rs 14,354 crore, from Rs 12,770 crore in April-June of 2014-15.
Industry body Nasscom expects the Indian IT-BPM sector to grow 14-16 percent in dollar terms for the fiscal.
Meanwhile, buying was also seen in other IT stocks where Wipro gained 1.69 percent, Tech Mahindra rose by 1.69 percent and HCL Technologies was up 2.91 percent on the BSE.
The BSE IT index went up by 4.57 percent to 11,187.32.