HCL Technologies share prices surged 5 percent on Monday to hit 52-week high after the IT firm announced plans to acquire DWS Ltd. The stock gained as much as 4.8 percent to Rs 849.90 per share on the NSE. At 10.44 am, the shares traded 4 percent higher to Rs 843.35.

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In its exchange filing, the company announced its intent to acquire the Australian IT, business and management consulting group DWS.

The IT firm delivers business and technology innovation to large clients across a spectrum of verticals, with offices in Melbourne, Sydney, Adelaide, Brisbane and Canberra.

The company further said, "The DWS Group, with FY20 revenue at AUD 167.9 million, provides a wide range of IT services including Digital Transformation, Application development & support, Program & Project Management and Consulting. The acquisition of DWS will strongly enhance HCL’s contribution to Digital initiatives in Australia and New Zealand while strengthening HCL’s client portfolio across key industries."

The Nifty IT index traded nearly 2 percent higher today as index heavyweights TCS, Infosys and HCL Technologies were surging. Another reason for this surge is TCS CEO Rajesh Gopinathan's recent comment on the sector.

He said, "While there are some headwinds, the outlook remains positive on the back of improving deal activity and sustained cost control. The new rules of customer engagement, future of work and digital governance present an opportunity that the IT sector can capitalise on."

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