IT index rises over 2% following Coforge and Persistent Systems' Q3 performance

Excluding HCLTech, which dipped by 0.5 percent, the remaining nine constituents of the IT index rose by 0.5-11 percent.

The Nifty IT index surged over 2 percent, with Coforge and Persistent Systems leading the gains among its 10 components. Coforge shares soared 10 percent, while Persistent Systems jumped 10 percent after reporting robust financial performance for the December quarter. Excluding HCLTech, which dipped by 0.5 percent, the remaining nine constituents of the IT index rose by 0.5-11 percent.

Coforge's rally was fueled by its quarterly results, where consolidated net profit grew 3 percent sequentially to Rs 206.4 crore, and revenue from operations rose over 8 percent to Rs 3,318.2 crore. CEO Sudhir Singh expressed optimism about sustained growth, stating on CNBC-TV18 that next year will see robust growth given the pipeline, large deals, and signed order book. Singh said that the company aims to hit a $2 billion revenue run-rate as soon as possible.

Cigniti Technologies, an AI and IP-led Digital Assurance and Digital Engineering services company, saw its shares rise over 11 percent after it reported a 46.7 percent year-on-year increase in net profit to Rs 22 crore for the quarter ended December. Revenue from operations rose 10.3 percnet to Rs 516.4 crore, up from Rs 468 crore in the same period the previous year.

Cigniti Technologies reported a 35.3 percent year-on-year increase in EBIT, reaching Rs 76.7 crore in Q3 FY25, with EBIT margins improving to 14.9 percenr from 12.1 percent in the same quarter last year.

Persistent Systems also delivered impressive results, posting a consolidated net profit of Rs 372.99 crore, reflecting a 15 percent sequential and 30 percent year-on-year rise. Revenue climbed 6 percent QoQ and 23 percent YoY to Rs 3,062.3 crore. The company’s strong performance prompted mixed reactions from brokerages, though the stock gained 10 percent in response to the results.

Wipro's shares surged over 3 percent on robust trading activity, with combined volumes on the NSE and BSE reaching 3 crore shares, three times the one-month daily average of 1 crore shares.

Overnight, Wall Street's major indexes rose, with the S&P 500 reaching an intraday record high, fueled by strong earnings from Netflix and President Donald Trump's announcement of a $500 billion private-sector artificial intelligence infrastructure investment plan.

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The technology sector led the gains, with Nvidia and Microsoft contributing significantly. Netflix shares surged almost 10 perccent after reporting a record number of subscribers for the holiday quarter, enabling it to increase prices for most service plans.

After being sworn in as president President of the US, Donald Trump announced that ChatGPT creator OpenAI, SoftBank, and Oracle are planning a joint venture called Stargate, which will build data centres and invest up to $500 billion in US infrastructure for artificial intelligence.

As India approaches the Union Budget 2025 on February 1, Rohan Bhargava, Co-Founder of CashKaro and EarnKaro said that it is important for the government to focus on increasing investment in research and development for emerging technologies such as AI, 5G, and semiconductors.

"This will not only foster innovation but also attract top talent to India. Additionally, skilling initiatives focused on digital technologies will act as an important bridge to prepare our workforce for the future of work and address the rising demand for skilled professionals. A strong data protection framework will further play a vital role in building consumer trust and enabling responsible data usage, laying the foundation for sustainable growth and innovation in the digital economy."

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Jahnvi S, Director of Livey Technologies, emphasised the importance of increased funding in the upcoming Budget to accelerate AI-driven growth in India’s electronics sector.

She highlighted that with India aiming for $300 billion in electronics manufacturing and $120 billion in exports by 2025-26, and AI projected to contribute $450-500 billion to GDP by 2025, higher budget allocations are critical. "This will have ripple effects on complementary industries such as IT/BPO services, customer care call centers, co-working spaces, and the gaming industry."

"These sectors, inter-related to the growth of electronics and AI, will benefit significantly as advancements in technology enhance workplace efficiency and productivity.  It will also drive exports, ensuring India stays on track to meet its $ 5 trillion GDP target," she added.

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