TCS’s market value exploded by $13.3 billion, catapulting the Nifty IT index to its biggest weekly climb in 18 years. The surge came after the firm released Q4 results that outpaced Wall Street expectations, and the market reacted by piling into the top ten IT stocks, which together added $30 billion to their combined cap.
The index jumped 12% to close at 31,924, its highest level in eight months. Year‑to‑date, the IT gauge has trimmed a 16% decline, still trailing the Nifty FMCG’s 20% slide. Infosys added about ₹7 billion, while HCL Technologies saw a ₹5.3 billion lift.
HCL shifted its revenue‑growth guidance up, and Tech Mahindra’s 9‑month revenue beat sparked an 8.5% single‑day jump, the biggest since March 2020. Morgan Stanley and Jefferies lifted their ratings, citing stronger demand for AI‑led services and the momentum of large‑deal wins.
Ramesh Damani, a BSE member, said the sector is now viewed as a defensive play, offering stable cash flow even as growth stalls. He added that valuations have become more attractive after the sell‑off.
With AI valuations easing and interest rates on the rise, market participants are rotating into IT for value. Analysts expect the sector to remain resilient as the broader AI rally unwinds and the focus shifts to solid fundamentals.