The Nifty IT index surged nearly 5 percent on July 12, driven by strong performances from Tata Consultancy Services (TCS), Infosys, and Wipro. This wave of optimism in the IT sector followed TCS's announcement of its Q1 FY25 earnings on July 10 after market hours, where the company's consolidated net profit and revenue exceeded analysts' expectations.
In response to TCS's impressive results, several brokerage firms, including Jefferies, Nuvama, and Nomura, upgraded their ratings and target prices for the stock.
At 1:34 PM, shares of HCLTech, Infosys, LTIMindtree, Wipro, and TCS were up between 3-7 percent, making them the top gainers in the Nifty 50 index.
Midcap IT stocks also experienced a significant surge. Shares of Cyient, Oracle, Persistent Systems, Mphasis, Zensar Tech, Coforge, Sonata Software, and KPIT Tech climbed between 4-11 percent.
Follow our live blog for all the market action
TCS reported a consolidated net profit of Rs 12,040 crore for the quarter ended June, exceeding Moneycontrol's estimate of Rs 11,999 crore. The company's revenue from operations reached Rs 62,613 crore, also surpassing the projected Rs 62,190 crore.
The optimism spurred by brokerage upgrades extended to other IT companies as well. Wipro broke a three-day losing streak, rising nearly 5 percent. Meanwhile, HCLTech and Infosys both posted gains for the second consecutive session, and LTIMindtree marked its third straight session of gains.
Also Read | TCS Q1 FY25 triumph spurs target price upgrades from major brokerages
In a research report dated July 11, Nuvama expressed optimism about Indian IT stocks. The brokerage said that it has been positive on the sector throughout the year and expects robust deal-wins from recent quarters to gradually translate into revenue as the US macroeconomic conditions improve.
IT stocks drove both the Nifty and Sensex to record highs on July 12. Buoyed by the performance of IT stocks, the Nifty 50 and Sensex reached record highs of 24,592.20 and 80,893.51, respectively.
Investors are now eagerly awaiting HCLTech's earnings report, set to be released later today.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
