MUMBAI: Indian markets were trading at a fresh record high led by gains in IT stocks with Wipro earnings due later on Thursday. This was the third consecutive session when markets traded higher.

the Sensex rose 0.55% to 53,196.72, while Nifty climbed 0.50% to 15,932.50.

On Wednesday, IT major Infosys had increased its revenue outlook to 14-16% from 12-14%. Large deal intake was healthy at $2.6 billion in the first quarter of FY22 (30% new), with 22 large deals signed during the quarter. Analyst says that the deal pipeline remains healthy with a good mix of new and renewal deals, offering good revenue visibility.

Also another midcap IT firm reported better than expected earnings and advanced its revenue guidance. L&T Technology Services Ltd surged over 15?ter its management increased its revenue guidance for FY22 to 15-17% from 13-15?rlier.

Investors are now awaiting Wipro Ltd earnings due later today. According to 18 Bloomberg estimates, the firm expected to report a revenue of Rs17,630 crore and profit of Rs2,827.90 crore. The scrip trading 2.5% higher.

Other IT firms like HCL, Tech Mahindra, Cyient, Zensar Tech, Birlasoft, Aptech gain between 2-7%. The BSE IT Index hit a fresh record high of 30,403 and gained 1.3%.

"IT results out so far including that of majors like TCS & Infosys indicate a strong order pipeline emboldening the companies to raise their revenue guidance to 14 to 17%. This augurs well for the industry and can invite further investments. So, this leg of the market remains strong", said V K Vijayakumar, chief investment strategist at Geojit Financial Services.

"Retail activity is high in mid-small-cap space since heavy FII selling is in large caps. Global support to the markets comes from the Fed chief Powell's remark that rates will remain near zero until "inflation goes persistently and materially higher. This has further emboldened the equity bulls. Even though the broader market party continues, investors should exercise caution while buying into mid-small caps. Correction in the broader market, when it comes, can be sharp", Vijaykumar added.

According to Motilal Oswal report, the first quarter of FY22 earnings season has started off and will continue to provide stock specific action. Also it may give some direction to the market as investors would eye management commentary to gauge the scale of economic recovery.

"Since restrictions this time around were localized and less stringent v/s the lockdown in CY20, we expect the impact in Q1FY22 to be contained. We expect earnings momentum to accelerate in FY22 as the pace of vaccinations picks up and the economy opens up further. Consistent earnings delivery v/s expectations are critical for further outperformance in our view," Motilal Oswal report adds.