THE NIFTY IT INDEX RALLIES 8% IN THREE SESSIONS

The Nifty IT index emerged as the top sectoral performer on October 15, rising 2% and extending its gains over the past three sessions to around 8%. Heavyweights Infosys, Tata Consultancy Services and HCL Technologies advanced nearly 3% each, supporting the broader index. The IT index touched a fresh one-month high of 30,856.90 points during the session, buoyed by strong earnings from TCS and HCLTech. The results lifted investor sentiment towards the sector, while a sharp decline in Asian and US stocks linked to artificial intelligence infrastructure further supported the relative appeal of Indian IT shares. Oracle Financial Services Software was the only constituent of the Nifty IT index trading in the red. The strength in the IT stocks following the results of HCLTech and the optimism surrounding that will hold the IT index strong. Tech Mahindra rose 3.5%, while Wipro gained 1.7% ahead of their quarterly earnings announcements later in the day. Investors remained focused on upcoming results for further clues about the sector’s earnings outlook. Indian IT shares gained even as other Asian equity markets declined, dragged down by AI-linked stocks. The selloff followed stronger-than-expected US inflation data, which fuelled concerns about tighter global monetary conditions and weighed on high-growth companies whose valuations are particularly sensitive to interest-rate expectations. The global equity downturn intensified after chip stocks tumbled on Wall Street and across Asian markets, reversing part of this year’s strong rally in AI-related investments. Meanwhile, US Treasury bonds attracted safe-haven demand, while the dollar weakened. The decline in semiconductor stocks on Wednesday was triggered by US inflation rising at its fastest pace in five months. The data prompted traders to increase their expectations of further interest-rate hikes by the Federal Reserve, even as policymakers considered pausing in October.