Infosys, TCS, Wipro Lead Tech Stocks Gain On Trump's Push To Make US An AI Superpower
Wipro's stock rose as much as 3.4% during the day to Rs 308.5 apiece on the NSE.
Information technology stocks led gains in benchmark indices on Wednesday, on prospects that US President Donald Trump's artificial intelligence boost will favour domestic companies.
Trump pushed to make the US an AI superpower by having fewer guardrails by immediately halting the implementation of key safety and transparency requirements for AI developers. Improving business activity in the US would translate into more order wins for domestic tech firms.
IT bellwethers Infosys Ltd., Tata Consultancy Services Ltd., and Wipro led the gain in the Nifty in early trade. All three companies surged over 2% during the session, while Tech Mahindra shares rose over 1%. However, shares of Persistent Systems Ltd. tumbled over 7% ahead of its third quarter earnings.
However, earnings misses by leading tech services companies raise concerns that the sector will struggle to justify an $11-billion rally since the US presidential election.
Infosys raised its revenue forecast in constant-currency terms for the financial year ending March 2025 to 4.5–5.0% from its earlier projection of 3.75–4.5%. Tata Consultancy Services net profit rose 4.1% sequentially to Rs 12,444 crore in the quarter ended Dec. 31, 2024. Wipro's revenue was flat at Rs 22,319 crore.
Forward-looking indicators such as deal wins and employee additions remain weak “for almost every company in the sector”, Citi Research said in a note. The analysts retained a “cautious” view on the tech services sector in India due to margin pressure and a slower recovery in growth during the coming quarters.
Wipro's stock rose as much as 3.4% during the day to Rs 308.5 apiece on the NSE. It has risen 30% during the last 12 months. TCS' stock rose as much as 2.63% during the day to Rs 4,141 apiece on the NSE after having risen 7% during the last 12 months.
Infosys' stock rose as much as 2.4% during the day to Rs 1,843.8 apiece on the NSE. Shares have risen 12% during the last 12 months.
