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Nifty IT Index Surges 11 Percent Powered by Strong Earnings and AI Growth
- •The Nifty IT index rose 2.28 percent to 30,858, marking its fourth advance in five sessions and an 11 percent gain over the period.
- •Strong September-quarter results and upgraded revenue guidance from major firms like HCLTech and TCS drove the market rally.
- •HCLTech reported a consolidated net profit of 5,132 crore rupees, beating estimates, and raised its revenue growth guidance.
- •TCS announced that its annualised AI revenue crossed 3 billion dollars during the quarter, with total deal wins standing at 9.6 billion dollars.
- •A sell-off in Asian semiconductor stocks redirected investor focus and capital back toward Indian IT service providers.
Key Questions Answered
The Nifty IT index rose nearly 11% over five sessions following strong September-quarter earnings, upgraded revenue guidance, and improved deal momentum from major firms like HCLTech and TCS, alongside a broader market rotation following a sell-off in Asian chipmakers and semiconductor stocks.
HCLTech reported a consolidated net profit of ₹5,132 crore, marking a 21.2% year-on-year increase and an 11% sequential rise. Its revenue grew 11.5% year-on-year to ₹35,620 crore, prompting the company to raise its FY27 constant currency revenue growth guidance to 2.5-4%.
TCS posted a net profit of ₹13,884 crore, with revenue rising 1.3% sequentially to ₹73,188 crore. The company's annualised AI revenue crossed $3 billion, contributing over 10% to its overall revenue, while total deal wins stood at $9.6 billion.
