New Delhi: Following a surge in international technology stocks brought on by falling US inflation, shares of Tata Consultancy Services (TCS), Infosys, Wipro, Persistent Systems, Zensar Technologies, and Birlasoft, among others, increased by up to 7% on Thursday. Higher interest rates are likely to affect the stocks of technology companies. Domestic investors were encouraged by TCS’ positive order flows in the June quarter, even though the IT company made no indications that business would improve in the second half (H2) of the current fiscal year. The Street was disappointed by the HCL Technologies Q1 results. However, the stock was slightly trading higher.
On the BSE, Zensar Technologies’ stock increased 7% to Rs 425. At Rs 363.30, Birlasoft increased by 4.07%. To Rs 4848, persistent systems gained 3.31 per cent. TCS increased by 2.92% to Rs 3355.25. They were increasing by 2.83 per cent to Rs 1371, Infosys. Up to 2.8% growth was seen in Coforge, Tech Mahindra, Mastek, Mphasis, and Cyient. HCL technologies increased by 0.56 per cent to Rs 1116.40 despite its Q1 earnings falling short of street expectations.
At home, TCS’ significant beat on order inflow of $10 billion for the quarter-even without taking the BSNL deal into account-was the major plus. TCS is relatively optimistic about the secular long-term trend but is nonetheless concerned about the near-term demand in the face of unfavourable macroeconomic conditions.
Many analysts believe HCL Tech’s FY24 guidance is at risk. Overall, the Q1 results for HCL Technologies Limited (HCL Tech) were unexpectedly poor. The HCL Tech earnings fell short of expectations, including profitability, margin, and sequential constant currency (CC) revenue growth. Although the IT major reaffirmed its full-year outlook, experts warned a high ask rate and unsteady climate make it appear overly optimistic. Meanwhile, Wipro will announce its quarterly results today. This stock was up 1.58 per cent at Rs 397.80.
