Wipro soared by a whopping 14% on Monday, marking its most significant single-day surge since July 2020. The surprise revenue beat not only fueled this rally but also prompted some brokerage firms to upgrade their ratings. HCL Technologies also hit an all-time high, riding on a positive revenue growth forecast.
India’s top IT players, including Tata Consultancy Services and Infosys, collectively added a staggering $22 billion in market value over just two trading sessions since the start of the earnings season last Thursday, as reported by Bloomberg. The IT sector’s outlook is looking up, thanks to expectations of a revenue rebound and reduced global economic concerns.
Analysts are noticing a shift in sentiment, reflected in management commentary. Siddarth Bhamre, head of research at Religare Broking, highlighted this positive change. The optimism is translating into upgraded earnings expectations for major IT companies. After Infosys’ recent results, six brokerages raised their ratings, and JPMorgan Chase & Co. upgraded ratings for both Wipro’s US and India-listed shares.
According to Phillipcapital analyst Karan Uppal, further downward adjustments to estimates are unlikely. He anticipates that the companies’ earnings will start displaying growth in the upcoming fiscal year, set to kick off in April. The IT sector is buzzing with excitement and confidence, driven by these encouraging developments.