IT shares in focus; KPIT, L&T Technology, Mindtree hit record highs

Shares of information technology (IT) companies were in focus at the bourses on Wednesday, with KPIT Technologies, L&T Technology Services (LTTS) and Mindtree hitting their respective record highs on the BSE in intra-day trade.Among indviudal stocks, Coforge surged nearly 7 per cent to Rs 2,750, while Larsen & Toubro Infotech gained 4 per cent to Rs 4,070 in intra-day trade on the BSE. Zensar Technologies, LTTS, Wipro, Mindtree and Mphasis were up in the range of 2 per cent to 3 per cent, while, Infosys, HCL Technologies and Tech Mahindra were up between 1 per cent and 2 per cent.At 09:42 am, the S&P BSE IT index, the top gainer among sectoral indices, was up 1.3 per cent, as compared to 0.54 per cent risen in the S&P BSE Sensex. The IT index hit an intra-day high of 26,241 points, is 3.2 per cent away from its all-time high of 27,074 touched on January 14, 2021. In past three trading days, BSE IT index outperformed the market and was up 3.3 per cent, against 1.9 per cent gain in the benchmark index.The $1.9 trillion Covid relief bill stimulus, if passed, will boost the US economy and will, in turn, positively impact the IT industry (which generates majority of its revenues from this geography), ICICI Securities said in a note.Meanwhile, the Indian IT services industry reported one of its strongest third quarters in FY21, delivering USD revenue growth of 4.9 per cent quarter on quarer, helped by increased technology spends across all key industries (despite adverse seasonality), pick up in deal sizes, and faster conversion from pipeline to orders.