India’s Nifty IT index rose 15.8% from its Sept. 30 close through Oct. 22, with Reuters and The Economic Times citing quarterly results among factors behind the rebound.
Historical data from NSE Indices puts the Sept. 30 close at 27,704.80 and the Oct. 22 close at 32,081.25. Reuters reported it was still down about 16% for the year as of Oct. 16.
LiveMint reported that Tata Consultancy Services (TCS) gained 22% in October through Oct. 22, while Wipro and Tech Mahindra each rose 20%. The Economic Times said the index’s 11.7% weekly advance through Oct. 16 was its strongest since April 2008. It also reported that the rally added ₹2.8 lakh crore to Nifty IT constituents’ combined market capitalization.
Reuters said Wipro and Tech Mahindra revenue exceeded expectations. Tech Mahindra reported revenue of $1.693 billion, up 7.2% year over year in constant currency. Its new deal wins totaled $1.023 billion, up 25.4% year over year.
Wipro reported IT-services revenue of $2.612 billion, up 0.6% year over year but flat sequentially in constant currency. Its large-deal bookings were $674 million, down 58.6% sequentially in constant currency. TCS reported revenue of $7.642 billion, up 2.4% year over year in U.S. dollars and 0.5% sequentially in constant currency; its new deals had a total contract value of $9.6 billion.
HCLTech reported revenue of $3.724 billion, up 2.3% sequentially and 2.6% year over year in constant currency. Its quarterly advanced AI revenue reached $219 million, up 78% year over year in constant currency.
Ravi Singh, chief research officer at Master Capital Services, called the move “value buying after a prolonged correction,” The Economic Times reported. The outlet also said Jefferies saw scope for valuation gains if further negative growth surprises did not emerge, while sector growth expectations remained muted.
Reuters connected some demand for Indian IT to investors pulling back from AI-related equities worldwide. The Economic Times said some market participants saw established IT-services firms as a way to balance exposure to AI-themed equities.
Infosys scheduled its second-quarter results announcement for Friday, Oct. 23, according to its investor calendar.
