Infosys, HCL Tech, Wipro and TCS add $22 bn in market value in just 2 trading sessions
India's top IT firms, including Tata Consultancy Services Ltd. and Infosys Ltd., collectively added about $22 billion in market value over just two trading sessions since the start of the earnings season. This indicates strong investor confidence and positive sentiment in the sector.
LD Web Desk 
Wipro saw a substantial rally, with its stock surging as much as 14% on Monday. This was its largest intraday gain since July 2020. The surge was driven by a surprise revenue beat in its recent earnings report, which led to rating upgrades from several brokerages. This suggests that Wipro's performance exceeded market expectations, prompting analysts to revise their outlook upwards.
HCL Technologies achieved a new all-time high in its stock price. The surge was supported by its forecast for improved revenue growth, indicating strong optimism about the company's future earnings potential.
The overall sentiment in the IT sector has been bolstered by expectations of a revenue rebound and easing global macroeconomic worries. This broader positive outlook is likely contributing to the strong performance of these IT companies.
“A change in sentiment is being reflected in management commentary,” said Siddarth Bhamre, head of research at Religare Broking, told Bloomberg. The improving sentiment is also visible in earnings upgrades on big IT companies. At least six brokerages raised their ratings on Infosys since its results last week, while analysts at JPMorgan Chase & Co. upgraded ratings on Wipro’s US as well as India-listed shares.
“I don’t think the estimates are going to be downgraded any further,” Phillipcapital analyst Karan Uppal told Bloomberg. He expects the companies’ earnings will start showing growth in the next fiscal year which starts in April.
