Nifty IT jumps 1,000 points as TCS lands ABB AI deal
India's IT sector surged to a one-month high, driven by a major artificial intelligence contract for Tata Consultancy Services and solid earnings from LTM, signaling a potential shift in investor sentiment toward technology exporters.
The Nifty IT index surged more than 1,000 points to 29,038 by midday, marking its highest level in over a month. The sectoral gauge has now accumulated a roughly 6% gain across two consecutive trading sessions. Tata Consultancy Services led the advance, climbing more than 6% after securing a multi-million, multi-year contract with ABB.
Under the agreement, TCS will expand its mandate beyond managing infrastructure and applications to delivering end-to-end global network operations for the industrial conglomerate. The integration of artificial intelligence through an integrated network-as-a-service model highlights a critical shift in outsourcing. For investors, the deal demonstrates that top-tier Indian IT firms are successfully pivoting from traditional infrastructure maintenance toward higher-value, AI-driven contracts to secure long-term revenue.
LTM shares gained more than 4% to trade at Rs 4,215 after the company posted its first-quarter results for the 2027 financial year. The IT services provider reported a 17% year-on-year increase in consolidated net profit to Rs 1,466 crore, up from Rs 1,254 crore a year earlier. Operating revenue rose 18% year-on-year to Rs 11,608 crore, compared to Rs 9,841 crore in the prior year. However, brokerages maintained mixed views on the stock despite the strong headline figures.
HCL Technologies climbed nearly 6% to Rs 1,231.40 ahead of its own April-June quarterly earnings release scheduled for later today. Consensus estimates from five brokerages point to an 18% annual jump in net profit. Analysts expect resilient margins driven by favorable currency movements and cost efficiencies to compensate for anticipated sequential weakness in revenue.
The breadth of the rally extended across the sector. Tech Mahindra and Infosys shares jumped around 4% each, while Mphasis gained over 3%. Wipro, Persistent Systems, OFSS and Coforge all advanced more than 2%. This synchronized movement points to a broad reallocation of capital into Indian technology exporters.
The sharp upward move suggests the sector's risk-reward profile is improving after a period of stagnation. "Technical indicators, derivatives data and improving momentum suggest the risk-reward is gradually shifting in favour of bulls for IT stocks," said Anand James, chief market strategist at Geojit Investments. For market participants, the combination of a landmark AI deal and resilient margin forecasts indicates that Indian IT companies are effectively navigating current macroeconomic headwinds.
