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Explained - Decoding the 11% rally on the Nifty IT index in five sessions

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Explained - Decoding the 11% rally on the Nifty IT index in five sessions

Indian information technology (IT) stocks extended their rally on Thursday, October 15, with HCLTech, Tech Mahindra, Tata Consultancy Services (TCS) and Infosys among the top gainers on the Nifty 50. The Nifty IT index rose 2.28% to 30,858, marking its fourth advance in five sessions and taking its gains over the period to nearly 11%.

The rally has gathered pace following September-quarter results from HCLTech and TCS, with HCLTech’s stronger earnings, upgraded revenue growth guidance on the lower end and improving deal momentum supporting sentiment.

The broader focus on AI-led growth has also come into play, with Accenture outlining a three-year plan to move closer to $100 billion in annual revenue through legacy technology overhauls and a push to expand its mid-sized client base.

Shares of HCLTech were trading around 3.5% higher on Thursday, while those of Tech Mahindra gained about 3.1% ahead of its results announcement after market hours. TCS advanced nearly 3% and Infosys climbed around 2.7%. LTM and Wipro were also trading higher. However, Persistent Systems and Oracle Financial Services Software trading lower.

HCLTech has been on a five-session winning streak, gaining around 14% over the period. TCS has advanced in four of the last five trading sessions, rising a cumulative 13.7% over five days.

HCLTech reported consolidated net profit of ₹5,132 crore for the September quarter, up 21.2% year-on-year and 11% sequentially, beating the CNBC-TV18 poll estimate of ₹4,963 crore. Its revenue rose 11.5% YoY to ₹35,620 crore, although it was marginally below estimates.


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