Infosys m-cap nears Rs 5-trillion ahead of September quarter results
Shares of Infosys m-cap hit a fresh record high of Rs 1,164.70, up 3 per cent on the BSE on Tuesday, on the expectation that the company may raise its FY21 revenue growth guidance while announcing its July-September quarter (Q2FY21) results in tomorrow. The information technology (IT) bellwether is set to become the fifth company to touch market capitalisation of Rs 5-trillion.
At 02:46 pm, the market capitalisation (market-cap) of Infosys stood at Rs 4.95 trillion, 1 per cent away from the Rs 5-trillion mark. Currently, Reliance Industries leads the pack with Rs 15.4 trillion market cap, followed by Tata Consultancy Services (Rs 10.61 trillion), HDFC Bank (Rs 6.6 trillion) and Hindustan Unilever (Rs 5.02 trillion), BSE data shows.
In the past month, Infosys has outperformed the market by surging 23 per cent, as compared to 4.5 per cent rise in the S&P BSE Sensex. In the last three months, it has rallied 46 per cent, against 11 per cent gain in the benchmark index.
IT companies are expected to post healthy numbers for the second quarter of the fiscal year 2020-21 (Q2FY21) owing to multiple tailwinds such as strong deal flow, traction in digital technologies, and resolution of supply-side issues as the quarter witnessed easing of Covid-19-induced lockdowns in many countries.
Further, encouraging management commentary by Accenture recently as well as HCL Tech’s mid-quarter upward revision in revenue and earnings before interest, and tax (EBIT) margin guidance, also points towards a strong performance by the IT companies. That apart, cost rationalisation, lower travel cost, cross-currency benefits, according to analysts, are also expected to drive operating margins of the companies for the quarter under review, Business Standard reported.