Indian IT stocks gain as Cognizant clocks highest-ever revenue

Shares of Indian information technology stocks rose after global IT giant Cognizant Technology Services Pvt. reported its highest quarterly revenue.

The Nasdaq-listed firm logged 7% year-on-year revenue growth at $4.91 billion in the quarter ended June compared with the Bloomberg consensus estimate of $4.92 billion.

This is the fifth consecutive quarter of revenue growth. The company also approved a quarterly cash dividend of $0.27 per share.

Cognizant, however, lowered its full-year constant-currency growth guidance to 8.5%-9.5% from 9%-11% amid challenging time as attrition remained higher than peers. However, the IT giant said there are some positive signs that the attrition may have peaked with July resignation rates falling.

The NSE Nifty 50 jumped over 2.8%, best day in a week, with all the constituents surging. Bloomberg