HCL Technologies surges 5% amid block deal buzz, stock hits a 10-week high

HCL Technologies surges 5% amid block deal buzz, stock hits a 10-week high

Shares of HCL Technologies were up 5 per cent at Rs 1,283.80 on the National Stock Exchange (NSE) in Friday’s intra-day trade on back of heavy volumes as more than 7 million equity shares changed hands at the counter on the BSE and the NSE.

The stock of information technology (IT) consulting & software firm was trading at its highest level since October 14, 2021. It had hit a record high of Rs 1,377.75 on September 24, 2021.

At 09:26 am; HCL Technologies traded 3 per cent higher on the NSE, as compared to 0.09 per cent rise in the Nifty50 index. Around 8.15 million equity shares or 0.30 per cent stake of the company had changed hands on the NSE, the exchange data showed.

TV channel CNBC-Awaaz on Thursday, December 23, had reported that, HCL Tech promoters will buy 4.5 million shares of the firm via open market. The reverse booking for block purchase was launched at up to a 5 percent premium to the closing price, the report added.

Meanwhile, in past one month, HCL Tech has outperformed the market by surging nearly 15 per cent, as compared to 2 per cent decline in the Nifty50 index.

The brokerage firm Sharekhan expects a strong bounce back in HCL Tech’s growth in Q3FY2022 given strong deal wins, robust net headcount addition, anticipated good recovery in products & platforms business, client additions and broad-based demand.

HCL Tech’s strong IMS capabilities, robust partnerships with hyperscalers and strengths in digital foundation and modern applications position the company to capitalise opportunities in cloud space.Š HCL Tech’s new payout ratio of at least 75 per cent of net income over FY2022-2026 is positive. It provides comfort on efficient capital allocation ahead and will limit any large inorganic investments, the brokerage firm said in stock update.