IT stocks extend gains after Wipro, HCLTech Q3 beat

HCLTech, India's third-largest IT services provider, and fourth-ranked Wipro both surpassed quarterly revenue expectations.

Bengaluru: India's IT companies gained 4 per cent on Monday following better-than-expected results from Wipro and HCLTech, signalling stability in demand.

Wipro's shares rose 13.7 per cent to their highest since April 2022, and were on track for their best day since July 2020. HCLTech shares rose over 5 per cent to hit a record high.

The 10-member Nifty IT index climbed 4 per cent to a nearly two-year high, powering the benchmark Nifty 50 index to a fresh record high.

Last year, Indian IT companies struggled as clients favoured cost-oriented deals over growth-oriented ones.

There is "some stabilitization now from revenue deceleration," Wipro CEO Thierry Delaporte said in a post-earnings media conference on Friday.

Wipro is starting to see early signs of growth in its consulting vertical, led by double-digit sequential growth in order bookings at Capco, a firm it acquired in 2021.

Consulting "possibly raises hopes for growth normalisation in fiscal 2025," Emkay Global analysts said.