Stories
IT Stocks Soar on AI Optimism; Persistent Systems, Wipro, TCS Lead Gains
C
CNBC TV18•05-10-2026, 11:12
IT Stocks Soar on AI Optimism; Persistent Systems, Wipro, TCS Lead Gains
- •Indian IT companies like Persistent Systems, Mphasis, Wipro, and TCS saw significant gains, with Persistent Systems rising 3.1% and Wipro and TCS each up 2.1%.
- •The rally is fueled by growing optimism that AI will boost the tech sector, aligning with the Jevons paradox where efficiency drives higher demand.
- •Accenture CEO Julie Sweet noted that AI opportunities outweigh efficiency impacts, with the company reporting strong Q4 revenue growth and a robust AI pipeline.
- •Accenture secured record bookings, including 141 deals worth $100 million or more, and saw revenue per employee increase due to AI-led productivity.
- •Kotak Institutional Equities double upgraded Persistent Systems to 'Buy,' raising its target price to ’6,250, citing accelerated organic growth and strong execution.
Key Questions Answered
Shares of Indian IT companies including Persistent Systems, Mphasis, Wipro, and Tata Consultancy Services (TCS) were among the top gainers on Monday, October 5, 2026, rising 3.1%, 1.1%, 2.1%, and 2.1% respectively.
Kotak Institutional Equities double upgraded Persistent Systems to a 'Buy' rating from 'Reduce' and raised its target price to ₹6,250 from ₹5,250, indicating an upside of approximately 16.5%.
Accenture reported full-year fiscal 2026 revenue growth at 5%, beating its earlier guidance of 3-4%, while fourth-quarter revenue growth was around 7%. The company achieved strong deal momentum with a record 141 bookings worth $100 million or more.
