IT Stocks: TCS, Wipro, HCL Technologies trade higher after Nomura increases target price for IT firms

IT Stocks: Stocks of HCL Technologies, TCS, and Wipro were trading higher, while the ones from Infosys were down in early morning deals on Thursday (September 7) after brokerage firm Nomura raised the target price for these prominent IT companies and also gave a positive outlook for the IT industry in India.

Nomura on Wednesday upgraded the ratings for Infosys while maintaining its stance on TCS, Wipro, and HCL Technologies.

Other than that, Nomura also gave a positive outlook for the Indian IT industry. It estimated revenue growth would pick up in FY25F.

The brokerage said that the growth would be aided by large deals. As per its analysis, the margin improvement in the industry will be slow since cost-takeout projects will weigh on margins.

Despite its upbeat views on the IT industry, Nomura remains cautious about the sector's performance given limited visibility on a significant turnaround in indiscretionary demand for UT services.

Amid Nomura's ratings for Indian IT stocks and its positive outlook for the industry, ZeeBiz takes you through the performance of prominent Indian IT company shares in early trading on Thursday.

TCS 

TCS was trading higher by 0.15 at Rs 3,435.00 in early trading on Thursday.

Nomura has maintained a'reduce' rating for the company and has increased the target price from Rs 2,800 to Rs 3,040.

The IT services company announced on Wednesday that it had inked a deal with the digital unit of Jaguar Land Rover to transform, simplify, and help manage its digital estate.

The company's shares in the last one month have not performed well, sliding 1.44 per cent, while they have moved up at a moderate rate of 1.29 per cent in the last six months.

In comparison to that, the benchmark index, the Nifty 50, has outperformed the IT company's stocks, rising 0.20 per cent in the last month while soaring 10.60 per cent in the last six-month duration.

Infosys 

The company's share was trading 0.60 down at Rs 1,468.20 in early morning deals on Thursday.

Nomura has upgraded its rating from 'Reduce' to 'Neutral' for the company and has raised its target price from Rs 1,210 to Rs 1,410.

The company announced on Tuesday that it had been positioned as a leader in the IDC MarketScape: Worldwide Artificial Intelligence Services 2023 Vendor Assessment.

Wipro 

The company's stock was trading 0.26 per cent higher at 430.20 in early morning trading on Thursday.

There has been quite some buying interest in the shares of the company in the last five trading sessions, as they have risen 5.35 per cent.

They outperformed the benchmark Nifty 50, which has jumped 1.77 per cent during the same period.

Nomura has maintained a 'Neutral' rating for the company, raising its target price to Rs 420 from Rs 375.

HCL Technologies 

The company's stock also traded in positive territory like many of its leading counterparts, rising 0.75 per to Rs 1,245.00 in the morning hours on Thursday.

It has fared well in the last five trading sessions, jumping 6.11 per cent.

Nomura has maintained its rating of 'Neutral' for the company, raising its target price from Rs 1,090 to Rs 1,220.