Indian IT Shares Rally After HCLTech Earnings Ease Demand Fears
The Nifty IT index jumped 5.2% as HCL Technologies posted stronger quarterly profit and reassured investors about software-services demand.
Key takeaways
- The Nifty IT index rose 5.2%, its biggest single-day gain in about 17 months.
- HCL Technologies' second-quarter net profit increased 21.2% year on year.
Indian IT shares rallied on Tuesday, with the Nifty IT index rising 5.2% for its biggest single-day gain in about 17 months. HCL Technologies led the advance after reporting stronger quarterly profit.
HCL’s September-quarter net profit rose 21.2% year on year, beating analyst expectations. All 10 companies in the index closed higher, including Tata Consultancy Services, up 6.8%, and Infosys, up 4.13%.
As of Tuesday afternoon, HCL Technologies traded at ₹1,326, up 8.42% from the previous close. Investors remain concerned about how quickly global adoption of artificial intelligence may affect demand for software services, according to Krishna Sanghavi of Mahindra Manulife Mutual Fund.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
