 "IT index records sharpest intraday rally in over 4 months; up 9% in 3 days")
IT stocks on Friday, June 7: Information technology (IT) shares continued at their upward movement for a third straight day, with the Nifty IT index, gaining 3.5 per cent in Friday's intraday trade, and recording its sharpest rally in the past four months. Earlier, on January 15, 2024, the index had surged 3.9 per cent in the intraday deal.
Shares of IT companies rallied up to 6 per cent after the corporate announcements from Wipro, Mastek, Persistent Systems, and Mphasis boosted sentiment.
At 12:37 PM, the Nifty IT index, the top gainer among sectoral indices, was up 3.2 per cent as compared to 1.6 per cent rise in the Nifty 50 index. In the past three trading days, the IT index has soared 9 per cent.
Infosys, Wipro, Coforge, Persistent Systems, Mphasis, and LTIMindtree rallied between 4 per cent and 6 per cent in the intraday trade on the National Stock Exchange (NSE). While Tata Consultancy Services (TCS), HCL Technologies, Tech Mahindra, and L&T Technology Services traded higher in the range of 2 per cent to 3 per cent.
Among individual stocks, Wipro surged 6 per cent to Rs 486.40 on the back of huge volumes after the company informed the stock exchange that it has been awarded an order from a leading US Communication Service Provider worth $500 million. Under the contract, Wipro shall provide managed services for some products and industry specific solutions over a period of 5 years.
For FY24, the order book of Wipro was up over 16 per cent at $4.6 billion with large total contract value (TCV) of $1.2 billion. ICICI Securities highlighted that this is the second order announcement in the communications segment in FY25 with a multi million deal from Nokia earlier. The new inflows will improve revenue visibility, the brokerage firm said in a note.
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Shares of Persistent Systems, meanwhile, soared 5 per cent after the company announced that it has introduced GenAI Hub, an innovative platform designed to accelerate GenAI deployment in enterprises. It integrates with existing infrastructure, applications and data, enabling the rapid development of tailored, industry specific GenAI solutions.
"GenAI Hub supports the adoption of GenAI across various LLMs and clouds, without provider lock-in. This platform simplifies the development and management of multiple GenAI models, expediting market readiness through pre-built software components, all while upholding responsible AI principles," the company said in a statement.
"GenAI Hub supports the adoption of GenAI across various LLMs and clouds, without provider lock-in. This platform simplifies the development and management of multiple GenAI models, expediting market readiness through pre-built software components, all while upholding responsible AI principles," the company said in a statement.
Mphasis also informed the stock exchange that it has earned the Specialized Pega Partner Distinction in the Americas for Insurance. This recognition highlights Mphasis's extensive experience with Pega’s AI decisioning and workflow automation platform, particularly in the insurance sector. The stock surged 5 per cent to Rs 2,557.50 in the intraday trade.