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Shares of IT stocks, including Tata Consultancy Services (TCS), LTIMindtree, and Infosys, surged up to 4.6% in intraday trade
IT Shares rise after TCS Q3 earnings
Shares of IT stocks, including Tata Consultancy Services (TCS), LTIMindtree, and Infosys, surged up to 4.6% in intraday trade on the NSE, driven by positive sentiment following TCS’s report of a 12% YoY increase in its PAT for the quarter ending December 31, 2024.
TCS saw the biggest jump, rising 4.61% to reach an intraday high of Rs 4,225, followed by LTIMindtree, which gained 3.72%, reaching Rs 6,058, and Tech Mahindra, which rose 3.47%. Persistent Systems also saw an intraday gain of 3.05%, peaking at Rs 6,367.65.
Shares of Mphasis, Infosys, Wipro, and Coforge rallied between 2.4% and 3%, contributing to a broad-based rally in the IT sector.
The strong performance of these IT stocks lifted the Nifty IT index by more than 2%, making it the only sectoral index in the green on the day.
Investors closely followed TCS’s quarterly earnings to assess changes in the demand landscape, as it was the first major IT company to report its numbers. TCS’s results did not disappoint, with the management expressing confidence in early signs of demand revival, driven by strong deal wins in Q3. TCS also provided guidance for a stronger performance in CY25 and FY26.
The management’s optimistic outlook, described by Nuvama Institutional Equities as the most positive in two years, fueled strong buying across the IT sector. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that TCS’s results indicate that the IT sector will remain resilient.
Shaji Nair, Research Analyst at Mirae Asset Sharekhan, highlighted that TCS’s commentary on early signs of revival in discretionary spending across certain verticals is promising and sets a positive tone for CY25.
The other major IT companies—Infosys, HCL Tech, Wipro, and Tech Mahindra—are set to report their quarterly results next week.
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