Tech Mahindra shares surged more than 7 percent on Friday, emerging as the top gainer on the Nifty 50, after the IT services company reported better-than-expected fiscal second quarter results. Strong deal wins, improving operating margins and positive brokerage commentary supported the stock.
Tech Mahindra stock climbed 7.3 percent to Rs 1,770 in morning trade, taking its year-to-date gain to 9.8 percent, compared with an 11.5 percent decline in the Nifty 50. The company's market capitalisation stood at approximately Rs 1.73 lakh crore.
The rally came amid broader buying in IT stocks. Infosys gained 3.94 percent to Rs 1,153.70, while TCS advanced 3.27 percent to Rs 2,426.90. HCLTech rose 1.15 percent to Rs 1,375.60. At 10:29 am, the Sensex was up 449.11 points, or 0.60 percent, at 74,764.72, while the Nifty 50 gained 145.05 points, or 0.63 percent, to 23,142.40. Market breadth was positive, with 2,039 stocks advancing against 1,419 declining.
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HSBC maintained its Buy rating on Tech Mahindra with a target price of Rs 1,800 per share, implying approximately 9 percent upside from Thursday's closing price. The brokerage said Tech Mahindra's second-quarter results were slightly ahead of expectations, with growth momentum remaining strong relative to its top-tier IT peers.