Infosys stock soars 15% riding on Q1 results

Shares of IT bellwether Infosys on Friday shot up by nearly 15 per cent in early morning trade, after the company reported first quarter results in-line with market expectations.

Following the results, shares of Infosys opened the day on a positive note and as the trade progressed it further jumped 14.96 per cent to Rs 2,905 on the BSE.

At the NSE, the scrip zoomed by 14.92 per cent to Rs 2,905.60.

The scrip was the top gainer on both the key indices -- Sensex and Nifty -- during early trade.

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Spurt in Infosys scrip was significant in sending the BSE benchmark Sensex higher by 119.15 points to 19,795.21 at 0925 hours.

Infosys alone contributed 166.15 points to the overall market gain.

"Infosys reported reasonably good numbers. Results are in-line with market estimates. The stock is seeing robust buying on the back of good guidance and positive quarterly numbers," Paras Bothra, Research Head at Ashika Stock Brokers said

Infosys on Friday reported nearly 4 per cent increase in consolidated net profit to Rs 2,374 crore (Rs 23.74 billion) for the first quarter ended June 30, 2013.

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The Bengaluru-based firm had reported a net profit of Rs 2,289 crore (Rs 22.89 billion) in the year-ago period, it said in a Bombay Stock Exchange filing.

Consolidated revenue for the reported quarter was up 17.2 per cent to Rs 11,267 crore (Rs 112.67 billion) from Rs 9,616 crore (Rs 96.16 billion) in the year-ago period.

While India's second largest software services exporter kept its US dollar revenue guidance unchanged at 6-10 per cent for this fiscal, it revised its rupee revenue guidance upwards to 13-17 per cent from 6-10 per cent for the same period.

According to Kishor Ostwal, CMD, CNI Research: "Infosys numbers are in-lne with street expectations and guidance maintained which is a huge plus as market was expecting weak guidance."

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"Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, we have done well in Q1 and are cautiously optimistic about rest of the year," Infosys CEO and Managing Director S D Shibulal said.

Meanwhile, buying was also seen in other IT stocks, with TCS trading higher by 2.06 per cent to touch a record high of Rs 1,619, while Wipro rose by 2.85 per cent to Rs 373.70 and HCL Tech went up by 1.74 per cent on the BSE.

Following the gains in these stocks, the BSE IT index was trading 6.32 per cent higher at 6,816.80 in early trade.