Shares of IT companies were in the spotlight today after TCS said it would consider buying back shares later this week. TCS shares surged over 5.5% to a new high of 2,666 while Infosys shares rose 4% to 1,054, also a new high.

TCS board will meet on October 7 to consider a proposal for buyback of equity shares of the company. No other details of the buyback plan were disclosed. The board is also slated to consider its financial results for the September quarter and declaration of a second interim dividend to the equity shareholders at that meeting.

In 2018, the Mumbai-based company had undertaken a share buyback programme worth up to 16,000 crore. The buyback, at 2,100 per equity share, had entailed up to 7.61 crore shares.

Many analysts remain positive on IT stocks. "Q2FY21 will mark the beginning of robust QoQ revenue growth of 3-6% (in USD) for large caps aided by 135-185bps cross currency tailwinds. TCS, Infosys, HCL Tech, Wipro and Tech Mahindra are estimated to report 5.0%, 5.4%, 6.3%, 3.0% and 3.7% growth, respectively QoQ; we estimate EBIT margin expansion of 200bps, 20bps, 80bps, 40bps and 250bps, respectively, QoQ," domestic brokerage Edelweiss said in a note.

"We expect robust commentaries, record deal wins and guidance upgrades by all companies. Revenue growth will be led by strong spurt across all industries, verticals and geographies. We believe this is the beginning of guidance upgrades by companies and will be followed by consensus upgrades for several quarters to come," it said.

Edelweiss likes Infosys, HCL Tech, TCS, Tech Mahindra, Mindtree, LTI, LTTS, Eclerx, Persistent and Cyient in this space.