TCS, HCL Tech, Infosys, other IT stocks rally up to 6%, Nifty IT surges 4%. Here's why
Shares of IT stocks, including heavyweights Tata Consultancy Services (TCS), HCL Technologies, Infosys, and others, surged up to 7% on Monday, pushing the Nifty IT
Shares of IT stocks, including heavyweights Tata Consultancy Services (TCS), HCL Technologies, Infosys, and others, surged up to 7% on Monday, pushing the Nifty IT index around 4% higher despite the overall bearish sentiment on Dalal Street.Nifty IT surged over 1,000 points to 29,038, as seen at 12.30 pm. Notably, this is the highest level seen by the sectoral index in more than a month. It has now surged around 6% in just two consecutive sessions of gains.TCS share priceTCS shares were the top gainers on the Nifty IT index, rallying more than 6% after India’s largest IT company announced a multi-million, multi-year deal with ABB to transform global network operations with artificial intelligence.The IT bellwether today announced that it has signed a multi-million, multi-year deal with ABB to scale its role from managing infrastructure and applications to delivering end-to-end global network operations, through an integrated network-as-a-service model.As part of the deal, the company will help ABB improve user experience, enhance operational efficiency, strengthen security and compliance, scale service delivery, and prepare for next-generation digital operations.
ABB’s Future Network Model programme, an enterprise-wide initiative to transform its global network into a standardized, centrally managed digital infrastructure, is at the centre of this partnership. As a strategic programme partner, TCS will design, integrate, and run ABB’s global network ecosystem as a secure, modern, and AI-driven service.Also read: Should you buy, sell or hold TCS shares?HCL Tech share priceHCL Technologies shares followed, jumping nearly 6% to trade at Rs 1,231.40 apiece on NSE. The company is all set to announce its results for the April-June quarter of the financial year 2027 later today.While the company is expected to report sequential weakness in revenue, its margins are likely to remain resilient, supported by favourable currency movements and cost efficiencies. HCL Tech is expected to report an 18% year-on-year rise in net profit, based in the average estimates of five brokerages.LTM share priceLTM shares surged more than 4% to trade at Rs 4,215 apiece.
This comes after India's sixth-largest IT services company reported a 17% year-on-year (YoY) rise in consolidated net profit for the April-June quarter of FY27, while brokerages issued mixed views on the stock.The company posted a consolidated net profit of Rs 1,466 crore for the first quarter, up from Rs 1,254 crore a year earlier. Revenue from operations rose 18% YoY to Rs 11,608 crore, compared with Rs 9,841 crore in the corresponding quarter last year.Other IT stocksTech Mahindra and Infosys shares jumped around 4% each, while those of Mphasis were up over 3%. Wipro, Persistent Systems, OFSS and Coforge shares gained more than 2% each.Geojit Investments' Chief Market Strategist Anand James recently told ETMarkets that technical indicators, derivatives data and improving momentum suggest the risk-reward is gradually shifting in favour of bulls for IT stocks.Also read: HCL Tech Q1 preview | Revenue may dip QoQ; net profit could rise on currency depreciation(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
The BriefWire