Having beaten markets expectations on performance for the third quarter ended December 2013, Infosys’ shares staged smart gains on Friday as the stock rose by 2.8 per cent during the day to close at Rs 3,548.9 per share.
In the process the scrip lifted the IT index and even the benchmark Sensex at the BSE that witnessed its highest gain in the eight trading sessions in January 2014. The Sensex rose by 45 points or 0.22 per cent, the highest single day gain this year, to close at 20,758.5.
While Infosys shares rose on performance as the company announced an operating profit margin of 35.7 per cent, the results had a positive impact on other IT stocks too as there was demand for them in anticipation of a better performance.
Wipro rose by 2.6 per cent during the day while TCS jumped by 2.9 per cent during the day to hit an all time high of 2,307 before closing the day at 2,281 witnessing a gain of 1.7 per cent.
“Infosys’ revenue was in line but operating profit margin was a positive surprise and an early indicator of the fruition of management’s efforts towards transforming the company to a ‘desirable Infosys’,” said Ashish Chopra, IT analyst at Motilal Oswal Securities.