Shares of information technology companies surged in the morning trade even as the broader market was trading with marginal gains.
The BSE Information Technology index was trading with gains of 1.54 % at 12213.70. It touched a high of 12,272.23 points.
The BSE Teck index also surged to a high of 6,820.44, registering a jump of 1.61 % in morning trade. The index was quoted at 6,784.92, up 1.08 % at 1052 hrs.
Meanwhile, the 30-share benchmark index Sensex was trading with gains of 0.35 % at 34,891.41 points.
The leading IT companies like Infosys, Tata Consultancy Services (TCS), HCL Technologies and Tech Mahindra registered gains of as much as 3 % on the BSE.
Infosys surged 3.30 % to touch a 52-week high of ₹ 1,160, registering a surge in its shares price for the eighth consecutive session.
TCS also hit a new high of ₹2925.00. Similar was the case HCL Technologies also which touched its 52-week high of Rs 962.70.
Meanwhile shares of Tech Mahindra touched a high of ₹ 564, up 1.11 % over its previous closing price.
Morgan Stanley in a research note has said that the Indian IT services stocks are set for a turnaround in 2018 as recovery in spending is “imminent“.
According to the global financial services major, a turnaround in IT spending could quickly turn sentiment on these stocks.
Though the sector faces risks from automation and a slower pace of market share gains from global vendors, a cyclical rally could be in the offing, it added.
