Indian IT Index Posts Biggest Weekly Jump Since 2008
The Nifty IT index climbed 11.72% as investors favored Indian services companies amid a sell-off in AI-linked stocks across Asia.
Key takeaways
- The Nifty IT index rose 11.72% for the week, its biggest gain since April 2008.
- A sell-off in AI-linked stocks across Asia helped draw investors toward Indian IT services companies.
- The Economic Times said the index remained down 16% year to date after the rally.
Indian IT stocks posted their biggest weekly gain in about 18 years. The Nifty IT index rose 11.72% to 31,924.10 on Friday, its steepest weekly rise since April 2008.
The rally came as AI-linked shares sold off across global markets. Business Standard reported that the selling began after US inflation data, while semiconductor-heavy Asian markets also fell amid concerns about the returns on AI investments.
Quarterly results, improving deal prospects and lower valuations after a prolonged correction also helped bring investors back, according to Ravi Singh, chief research officer at Master Capital Services, cited by The Economic Times.
Tech Mahindra gained 18.22% for the week after revenue rose 15.6% and margins widened, although net profit missed estimates, Business Standard reported. TCS rose 14.33% over the week and said AI accounted for more than 10% of its revenue.
The Economic Times said the Nifty IT index was still down 16% year to date after the rally. The broader Nifty rose 2.8% for the week.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
