Shares of India's second largest software services exporter, Infosys Ltd, rose as much as 3.8 per cent to Rs 721.80. The stock was among the top percentage gainers on NSE index.

The company had on Tuesday reported 13.8 per cent growth in second quarter and consolidated profit at Rs 4,110 crore, on a sequential basis. Revenues grew 7.7 per cent to Rs 20,609 crore compared with Rs 19,128 crore in the previous quarter. Infosys also retained its annual growth guidance of 6-8 per cent, in line with analyst expectations.

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Morgan Stanley analysts say that the company has started to show similar vertical trends to those of Tata Consultancy Services Ltd. Strong deal win and net headcount addition points to a strong demand environment, it adds.

Citi believes 2018 will be marginally better than 2017 for Indian IT. The brokerage prefers Infosys over TCS given better visibility post Q2. Macquarie has raised the price target to Rs 775, and has retained “outperform” rating. But it says Infosys still remains a work in progress, and, hence, 20 per cent valuation discount to TCS is warranted.

Jefferies has raised the price target on US-listed stock to $11.40 from $11, and has given “buy” rating. EBIT margin of 23.7 per cent was 80bps below estimate and investments are likely to accelerate in H2 vs H1 suggesting further margin pressure at least in the near-term.

More than 6.1 million shares traded as of 0413 GMT, 0.7 times their 30-day moving average of 8.5 million shares. About 33 of 45 brokerages rate the stock “buy” or higher, nine ”hold” and three “sell” or lower; their median price target is Rs 763.

(With inputs from Reuters)