The Indian IT sector is on the rise, with the Nifty IT index gaining nearly 2% to 39,442.75, marking its fourth consecutive session in the green. This surge is largely driven by hopes for further US rate cuts and a strong performance by Infosys ADR.
Key Factors Behind the Rise
Several factors have contributed to the sharp rise in Indian IT stocks. These include rising hopes for US rate cuts, a surge in Infosys ADR, and better-than-expected earnings reports from Accenture.
US Inflation and Rate Cuts
US consumer prices rose less than expected in November, with a 2.7% year-on-year increase. This moderation in inflation has reignited hopes for more US rate cuts. Federal Reserve Governor Christopher Waller also stated that the central bank still has room to cut interest rates.
IT Company Performance
Accenture released strong first-quarter results, driven by artificial intelligence solutions. The company reported revenue of $18.74 billion, exceeding analysts' estimates. Other IT companies, such as Wipro, Infosys, and Persistent Systems, also saw significant gains.
Impact of Rupee Weakening
The weakening of the rupee against the US dollar is also benefiting IT companies, as most of their revenue is generated in US dollars.
Top Gainers
- Wipro, Infosys, and Persistent Systems shares jumped around 3% each
- HCL Technologies and Tech Mahindra shares rose around 2% each
- Tata Consultancy Services (TCS) and Coforge shares gained more than 1% each
Remember, this is perspective, not prediction. Do your own research before making any investment decisions.