India's IT index hits 21-mnth high post TCS, Infosys Q3 results

L&T Technology Services

12/01/2024 05:51

** India's Nifty IT index  .NIFTYIT  jumps 5% after sector
leaders Tata Consultancy Services  TCS.NS , Infosys  INFY.NS 
post better-than-feared Q3 results    
    ** Climb is highest since April 2022, during which a
pandemic-led surge boosted deal wins
    ** TCS rises 4.2%, while INFY climbs 7.6%, lifting shares of
other rivals, including Wipro  WIPR.NS  and HCLTech  HCLT.NS 
before their results later in the day 
    ** TCS, INFY report bigger-than-expected revenue growth in
Q3, signal overall demand situation not expected to deteriorate
further   
    ** For months, IT firms have warned that clients were either
cancelling or postponing deals, or reducing contract sizes over
persistent inflation and recession fears in key markets of the
U.S. and Europe
    ** Analysts' avg rating on TCS, smaller rivals WIPR, HCLT at
"hold" - LSEG
    ** INFY only "buy"-rated stock and L&T Tech  LTEH.NS  only
"sell"-rated stock on 10-member IT index - LSEG  
    ** If gains hold, IT index set to post weekly rise after
decline in previous three weeks 
    ** IT stocks up 2.3% YTD after 24% rise in 2023
   

 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))