IT stocks witnessed a rally on Monday on the back of a recent order by a US federal judge blocking the enforcement of a temporary visa ban by President Donald Trump's administration on several work permits, including the H-1B visa. Shares of TCS, Infosys, Wipro and Mindtree hit 52-week highs on Monday.
The IT stocks on the Indian exchanges witnessed a healthy buying on Monday. The S&P BSE IT index rose by 3.30%.
At 12.12 p.m., shares of Tata Consultancy Services (TCS) on the BSE were trading at Rs 2,672.80, higher by Rs 150.05, or 5.95% from the previous close.
TCS has also announced that its Board of Directors will consider share buyback in its meeting on October 7. This also has boosted the stock price. The stock closed 7.55% higher at Rs 2,713.95 on Monday on the National Stock Exchange (NSE).
Stock price of Wipro surged 5.67% or Rs 17.75 to Rs 330.75 per share. It closed 7% higher at Rs 335 on NSE.
Wipro is expected to announce its Q2 results on October 12, and Infosys on October 14.
TCS is expected to announce its Q2 results on Wednesday, which will set in motion the corporate earnings process.
Infosys shares were up 2.94%, closing at Rs 1,047.60 on Monday.
Shares of HCL Technologies were at Rs 824.15, higher by Rs 11.40 or 1.40%.
Mindtree stock rose by 2.73% to touch a new 52-week high of Rs 1,373.65 per share.
In June, Trump had issued an executive order temporarily barring the issue of new H-1Bs and other foreign visas including H-2B, J and L visas, till the end of the year.
The ban would have severely impacted IT professionals from India, as well as the companies.
In its order last week, the federal judge said that by enforcing the ban, Trump exceeded his constitutional authority and such a change does not serve any public interest.
Indian IT companies are expected to perform better in Q2 as analysts believe most of the companies have successfully adapted to â€˜work from homeâ€™ (WFH) model leading to business continuity and cost savings.
With IANS inputs