Nifty IT surges more than 1.6%, post TCS buy-back announcement

Nifty Information Technology Index saw a sharp surge in early session of trade, after TCS announced that in its next board meeting, it would consider buy-back of shares. This move comes after Cognizant recently announced a massive USD 3.4 billion buyback programme.

Since the announcement by IT major Cognizant, there were mounting pressure on other IT companies to declare buyback as all the big IT company sit on huge pile of cash which has been lying in their respective balance sheets.

The country’s largest IT company Tata Consultancy, move to consider buyback of shares as a welcome move, as it would be a good way to make use of the ideal cash lying by giving it back to the shareholders. However, this move is likely to pressurise other IT majors too, which has been sitting on the cash to distribute amongst its shareholders.

Infosys too have indicated of a buy-back, earlier in the week.

Amid all the chaos surrounding the sector, IT index has seen a good run up of close to 10 per cent in the last three months.

Top Gainers: -

Infosys- Rs 1,004.80 up 2.4%
TCS- Rs 2,450.10 up 1.55%
HCL Tech- Rs 839.75 up 1.15%
MindTree- Rs 463 up 1.17%
Tech Mahindra- Rs 501.70 up 1%