HCLTech jumps over 5%, TCS up 4%: Why are IT stocks rallying
Indian IT stocks experienced a significant rally, with major companies like HCLTech and TCS seeing gains of over 4-5%. Analysts suggest this growth is driven by better-than-expected quarterly earnings and a recovery in the Indian Rupee.
Why it matters
The rally signals a potential turnaround for the Indian IT sector, which has faced a difficult year due to earnings concerns and AI disruption.
Dalal Street began Tuesday on a strong note, with tech-heavy stocks fuelling the gains and pushing the BSE Focused IT index and Nifty IT around 3% higher. HCLTech emerged as the top gainer, rising 5.74% to Rs 1,290 after reporting strong quarterly results a day earlier, backed by improved profitability metrics.Tata Consultancy Services (TCS), India's largest IT company, also gained 5.07% to Rs 2,234.80 after announcing a 15% rise in net profit in its quarterly earnings last week. Other IT stocks joined the rally, with Tech Mahindra climbing 3.52% to Rs 1,521.70 and Infosys rising 2.06% to Rs 1,038.Around 10:55 am, the Nifty IT index was up 3.12%, or 885.65 points, at 29,235.25, while the BSE Focused IT index had gained 3.04%, or 1,044.37 points, to 35,366.87. The broader market also traded higher, with BSE Sensex rising 466.15 points, or 0.65%, to 72,390.83.
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