TCS, Wipro, Infosys, Persistent, Birlasoft, Zensar shares jump up to 7%. Here's why

Shares of Tata Consultancy Services (TCS), Infosys, Wipro, Persistent Systems, Zensar Technologies and Birlasoft, among others, gained up to 7 per cent in Thursday's trade, in line with a rally in global technology stocks on easing US inflation. Technology stocks are deemed sensitive to higher interest rates. Domestic investors also took heart from TCS' upbeat order flows in the June quarter, even as the IT firm gave no hint of recovery in the second half (H2) of the ongoing financial year. HCL Technologies Q1 results disappointed the Street. Yet the stock was trading marginally higher.

Shares of Zensar Technologies jumped 7 per cent to hit a high of Rs 425 on BSE. Birlasoft climbed 4.07 per cent to Rs 363.30. Persistent Systems advanced 3.31 per cent to Rs 4,848. TCS gained 2.92 per cent to Rs 3,355.25. Infosys added 2.83 per cent to Rs 1,371. Coforge, Tech Mahindra, Mastek, Mphasis and Cyient rose up to 2.8 per cent. HCL Technologies, whose Q1 results missed the Street estimates, also added 0.56 per cent o Rs 1,116.40.

Nasdaq Composite closed 1.15 per cent higher overnight after a report showed US inflation eased further with consumer prices registering their smallest annual increase in more than two years.

Watch: TCS share price jumps 3% after Q1FY24 results, HCL Tech rises marginally; which IT stock to buy? See what analysts say

At home, the key positive for the quarter was TCS' big beat on order inflow of $10 billion without even taking the BSNL deal into consideration. But TCS remains cautious about near-term demand amid adverse macros, while it is quite optimistic about the secular long-term trend.

Meanwhile, many aalyst feel HCL Tech's FY24 guidance is at rik. HCL Technologies Limited (HCL Tech) Q1 results surprised negatively, across-the-board. Be it sequential constant currency (CC) revenue growth, profitability or margin front, the HCL Tech earnings missed the Street estimates. Though the IT major maintained its full year guidance, a steep ask rate and an uncertain environment make it look a bit optimistic, analysts said.

Meanwhile, Wipro will announce its quarterly results today. This stock was up 1.58 per cent at Rs 397.80.

Also read: Stocks that share market analysts recommended on July 13, 2023: Titan, Reliance Industries, Tata Motors, Bharat Electronics, others

Also read: Stocks to watch on July 13, 2023: Wipro, TCS, Patanjali Foods, HCL Tech, Titan, others