Mindtree hits all-time high on renewed buying interest in IT stocks

BANGALORE: Shares of mid-sized software services provider Mindtree hit an all-time high on Wednesday on renewed buying interest in IT stocks ahead of their second-quarter results.

The Mindtree stock touched a record-high of Rs 1,190, up over 3%, and was trading at Rs 1,189 at 2.53 pm on the Bombay Stock Exchange.

Analysts said the Mindtree management had indicated that demand for its services was good and getting better. The company's largest individual investor, Coffee Day group chairman V G Siddhartha, has sold about six lakh shares of Mindtree over the past few days. Siddhartha and his group companies hold about 21% in Mindtree.

He made about Rs 65 crore by selling about 1.44% in the company. FID Fund Mauritius has bought over 200,000 shares of the company in a block deal.

"Most IT stocks are close to their highs on expectation of a good set of second quarter numbers," said Rikesh Parik, vice-president, markets strategy, Motilal Oswal. On Tuesday, HCL Technologies had a hit a 52-week high, and Tata Consultancy Services also hit its 52-week high earlier this month. "The rupee fall bodes well for IT firms," said Harit Shah, analyst with brokerage Nirmal Bang.

Mindtree, founded by former Wipro executives, has been among the better performing mid-sized IT firms.