TCS hits record high as tech shares rally on improved earnings outlook

Shares of software services exporters rallied with Tata Consultancy Services (TCS) hitting a record high, on hopes that earnings will look up in the fiscal year 2013-14 on the back of an improving global economy.

The gains come a day after the National Association of Software and Services Companies (Nasscom), the IT industry body, forecast that exports from the software services sector will grow 12-14 per cent in 2013-14 to as much as $87 billion.

Infosys shares gained 1.21 per cent, while HCL Technologies rose 3.53 per cent.

TCS shares gained 2 per cent, earlier hitting an all-time high of Rs 1,441.65, after Nielsen Holdings, best known for its TV ratings, increased the size of its contract with India's largest software service exporter to $2.5 billion from $1 billion.

"This reinforces TCS' positioning further in the large deal market and improves confidence in FY14 growth," HSBC said in a note dated on Tuesday.

Copyright @ Thomson Reuters 2013