The Nifty IT index surged 2.8% on January 10, 2025, buoyed by better-than-expected December quarter earnings from Tata Consultancy Services (TCS). TCS shares rallied over 4%, leading gains across the sector.
Key Performers in the IT Sector
All Nifty IT index components traded in the green, led by top performers such as TCS, LTIMindtree, Tech Mahindra, Wipro, Infosys, and Persistent Systems. Gains ranged from 1% to 4%.
The rally came despite the broader Indian stock market trading lower due to weak global cues. The Nifty IT index was the sole sectoral index in positive territory, reflecting strong investor sentiment in IT.
TCS Q3 Results Highlights
TCS reported:
- Net Profit: ₹12,380 crores, up 4% QoQ
- Revenue: ₹63,973 crore, a slight decline of 0.4% QoQ
- EBIT Margins: Improved to 24.5%, up 40 basis points sequentially
Additionally, TCS declared a special dividend of ₹66 per share and a ₹10 per share third interim dividend, with a record date of January 17.
Broader Impact and Outlook
The strong results from TCS and positive sentiment across the IT sector indicate resilience despite global challenges. Analysts expect similar robust results from IT majors like Infosys, HCL Technologies, and Wipro in the upcoming quarters.
The Nifty IT index's performance underscores the continued investor appetite for technology stocks, especially amidst the growing adoption of AI-powered solutions and digital transformation initiatives globally.
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