DBT Bureau
Bengaluru, 7 July 2024
The Nifty IT index, which measures the movement of major IT services and technology firms in India, ended the week (July 1-5) with an impressive 4.32% gain as investors took positions in both large and mid-cap IT stocks just before the announcement of Q1 FY25 earnings.
As the broader market hovered around a record high, buying interest was seen in IT and pharma stocks last week.
The Nifty IT index gained 4.32% to close at 37,720.75 last week. The index was one of the top gainers last week as the Nifty 50 hovered around a record level. The Nifty 50 rose 1.30% on a weekly basis to close at 24,323.85 on Friday.
Some brokerage houses have turned bullish on the Indian IT space. Global brokerage firm Nomura said in a report that the revenue growth rate of Indian IT firms has bottomed out. And anticipates the end of the earnings per share (EPS) downgrade cycle for the IT sector. Such positive commentary uplifted the sentiments among investors. IT firms are all set to announce their Q1FY25 results with TCS, which is scheduled to announce its results on July 11, 2024.
Last week, the share price of Tata Consultancy Services rose 2.17% to close the trading week at Rs 4,010 on NSE. Infosys saw a lot of buying interest last week as brokerages predicted that the company might report an industry-leading revenue growth rate in Q1. Its stock price gained 4.26% to Rs 1,641.10 on Friday. Wipro was another major gainer, whose share price moved up 3.11% to close the trading week at Rs 534.90. HCL Tech’s share price rose 4% to Rs 1,517.10 last week.
Among mid-tier IT firms, Persistent Systems gained the most with its share price surging 10.77% to Rs 4,769.55 last week. Birlasoft’s share price rose 2.30% to Rs 714.45 during the week ended July 5.
The Nasdaq Composite continued its bull run after it ended 2.58% higher at 18,352.76 during the week. Microsoft, Meta Platforms, Amazon.com, and Apple advanced during the week, pushing the information technology sector to an all-time high. As hopes of US interest rate cuts rose after the payroll data, technology stocks saw increasing buying interest among investors.
