Nifty IT index continued to roar in Monday’s trade (July 15)  and marked a fresh 52-week high of 39,567, taking the year-to-date (YTD) gains on the index to over 10 per cent. Stocks including Infosys, HCL Technologies, Mphasis, TCS and Wipro primarily lead the rally in the index.

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The decent earnings by the country’s IT major TCS triggered the upmove, which extended to today’s trade fuelling a new-high on the bluechip Nifty index. In today’s trade, the index gained 1.39 per cent to scale its new high.

At the last count, of the 10-share index, 5 stocks traded in the green, while the others were down up to 1.6 per cent at the last count. Mphasis was the top gainer up by nearly 2 per cent at the last count.

Mohit Jain, Research Analyst, Anand Rathi Institutional Equities highlighted two possible reasons for the uptick in the Nifty IT index 

1) US BFSI outlook is likely improving with expectations of some pent up in FY25, 

2) TCV to revenue conversion is likely to improve as a large part of cancellations seem to be behind. Companies, in general, are, therefore, looking at higher growth in FY25, added Jain.

 Atul Parakh, CEO of Bigul remarked that the Nifty IT index crossed the 39,000 mark for the first time since January 2022. He added that the rally is underpinned by rising market expectations for a Federal Reserve interest rate cut following a drop in the US inflation rate to 3 per cent, the lowest since June 2023. TCS's robust quarterly results, particularly the strong revenue growth from the BFSI vertical, have fueled optimism about a potential sectoral recovery, positively impacting mid and small-cap IT stocks. With the ongoing earnings season and favourable macroeconomic indicators, the outlook for the Nifty IT Index remains strong. Investors can anticipate continued momentum, positioning the IT sector as a key driver of growth in the Indian equity markets.