Indian information technology stocks were on course for their biggest weekly gain in 18 years on Friday, buoyed by stronger-than-expected quarterly revenue from major software exporters and a rotation into Indian shares amid a global selloff in AI-linked stocks.
The Nifty IT index has risen 10.4% so far this week, putting it on track for its biggest weekly percentage gain since the week ended October 31, 2008, when it climbed 11.24%, Reuters reported. The rally has outpaced all other major sectoral indexes and the benchmark Nifty 50, which has gained 2.6% this week.
Tech Mahindra jumped 8% on Friday after its second-quarter revenue beat expectations, aided by robust deal wins, while Wipro rose 5.8% after reporting stronger-than-expected quarterly revenue, with signs that delayed large deals could support growth in the coming quarters. As of 1:00 p.m. IST, Infosys gained 3.9% and Tata Consultancy Services rose 4.2%, while HCLTech added 1%. Persistent Systems bucked the trend, falling 3.3% after brokerages flagged margin pressures from higher amortisation costs.
The gains come as Indian IT services companies navigate concerns about artificial intelligence's potential impact on traditional outsourcing businesses. Despite the week's recovery, shares of Wipro and Infosys remain down about 34% and 31% so far this year, according to CNBC TV18.