$46 Billion Rally Shows India’s Tech Woes Are Easing – optimism is returning to Indian information technology companies, as the decline in the likelihood of a recession in the United States and the emergence of artificial intelligence as a potential new source of income contribute to the recovery of their shares.
📈 The NSE Nifty IT index has risen by 18% from the April low, increasing the market value by about $ 46 billion. The indicator, consisting of 10 participants, rose a notch in July and is on track to surpass the MSCI World Information Technology Index for the first time in seven months.
*️⃣ Profits increased after Asia’s largest software services exporter Tata Consultancy Services Ltd. last week reported a higher-than-expected profit for the latest quarter. Its shares rose along with shares of similar companies, including Infosys Ltd., whose reporting is scheduled today.
While TCS said some customers were deferring costs, the profit figures helped allay concerns about the impact of the economic downturn on customers around the world that plagued the industry earlier this year. The company and its colleagues, who have already submitted reports, also confirmed profitable offers in the field of automation and other new technologies.
“Generative AI has become the highlight of the quarter,” said K., CEO of Tata Consultancy. Kritivasan on the company’s profit and loss statement last week. “In every conversation I’ve had with clients over the past three months, this has invariably come up.”
The newfound optimism marks a change after Infosys warned just a few months ago about customers in key sectors such as finance retreating due to recession fears in the US and Europe, the largest markets for Indian IT companies. These concerns were exacerbated by the instability of the global banking system after the collapse of the Silicon Valley Bank.
According to Mark Matthews, Head of Asia-Pacific Research at Bank Julius Baer & Co, software exporters “return capital to investors with lots of dividends and buybacks.” “Entering the space was a good correction.” @ESG_Stock_Market
