DBT Bureau
Bengaluru, 12 July 2024
The Nifty IT index, which measures the movement of major IT services and technology firms in India, emerged as the major sectoral gainer on Friday as TCS’ Q1 earnings rekindled hopes of a likely recovery in the coming quarters.
At 12.30 PM (IST), the Nifty IT index was trading 4.51% higher at 39,070 as investors showed strong buying interest in both large and mid-tier IT services companies’ stocks. Gains in the IT index pushed the broader market to record highs on the last trading day of the week.
On Thursday, TCS’ Q1 earnings beat market estimates with the company posting sequential growth in all its verticals and geographies. The Tata Group company also posted a net addition in its headcount after three consecutive quarters of decline. Though the company management refrained from calling it out as a recovery, analysts were forecasting better times ahead for the sector after two years of downturn.
The share price of TCS was trading 6.4% higher at 12.30 PM in NSE at Rs 4,178, making it the major gainer among large-cap stocks. Infosys was up 3.48% to trade at Rs 1,710, while Wipro was another major gainer, whose share price moved up around 5%. HCL Tech, which will announce its results later in the day, was trading 3.28% up at Rs 1,561 per share.
Similarly, among mid-cap stocks, Coforge was trading 6.91% up at Rs 5,947.90 on Friday, while LTIMindtree was up 4.41% to trade at Rs 5,646.15. Persistent Systems is another major gainer, whose share price rose 6.30% to Rs 4,908.85.
With Infosys and Wipro announcing their results in the coming days, the market is likely to take cues from the management commentary next week.
