Now, IT stocks to ignite passion in Nifty, says Anil Singhvi, gives thumbs-up to TCS buyback offer

After the announcement of the Tata Consultancy Services (TCS) buyback offer, other IT companies including Wipro, Infosys and HCL Technologies are likely to carry out this exercise too. This will ignite 'Josh' in Nifty, Zee Business Managing Editor Anil Singhvi said. 

TCS has reported strong Q2 FY21 results and Zee Business was the only channel to say that the buyback offer will be around Rs 3000 per share. At this price the company will be paying a 9.5 per cent premium. 

Watch Zee Business Tweet Video Below:

अब IT शेयर भरेंगे निफ्टी में जोश... TCS बायबैक में जरूर बनेगा पैसा

अनिल सिंघवी ने कहा- मिडकैप IT शेयरों में अब आएगी मजबूती, TCS में जरूर लगाएं पैसा....बायबैक से पहले ही दिख जाएंगे बायबैक के भाव#EditorsTake #TCS #ITSector @AnilSinghvi_ pic.twitter.com/oVmOwbdUbY

— Zee Business (@ZeeBusiness) October 8, 2020

However, the size of buyback is Rs 16000 cr which is smaller than expectations, Singhvi said. Nevertheless, this should not be considered a small offer, he reiterated. 

Even on the previous occasion, the channel had advised to buy TCS shares when they were trading around Rs 1700. In the buyback, the company paid around Rs 2000 per share.  

He said that there is still a lot of opportunity in TCS shares now. He said that if the buyers buy at current price, they may see the buyback price much before the offer time. There is still a lot of time left.  

He said that the investors will get enough opportunities from here to invest in shares of TCS or Wipro.  

The Managing Editor said that the investors will only gain from this buyback and should invest in this stock.  

He said that if investors think that they have missed the opportunity in TCS and Wipro, then they should focus on Infosys and HCL. The results of these companies are likely to be strong for this quarter and investments in these stocks would give handsome results, he said. 

At 12:22 pm, TCS stock was trading at Rs 2,876.10 on NSE, up by over 5 per cent from the Wednesday close. 

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India's largest software services firm Tata Consultancy Services (TCS) on Wednesday reported 4.9 per cent rise in consolidated net profit to Rs 8,433 cr for the September 2020 quarter, and also announced up to Rs 16,000 buyback plan.