India's top four IT firms, led by Tata Consultancy Services Ltd. and Infosys Ltd., added about $22 billion in market value in just two trading sessions since Thursday when the earnings season kicked off, according to a Bloomberg report. The sector's sentiment has been further bolstered by a potential revenue rebound and easing global macroeconomic worries.
Wipro rallied as much as 14% on Monday, its biggest intraday gain since July 2020 before paring gains as the surprise revenue beat triggered rating upgrades from some brokerages. HCL Technologies Ltd. surged to a new all-time high, boosted by its forecast for improved revenue growth.
“A change in sentiment is being reflected in management commentary,” said Siddarth Bhamre, head of research at Religare Broking, told Bloomberg. Also read: Wipro shares climb 13% post Q3 results. Here's why
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.