Indian IT stocks added more than $12 billion in market capitalisation on Tuesday, October 13, as better-than-expected September-quarter earnings from HCL Technologies and a sell-off in Asian chipmakers triggered a rotation into the so-called anti-AI trade.
The 10 constituents of the Nifty IT index collectively added more than $12 billion in market capitalisation.
|
Stock |
Gains |
|---|---|
|
TCS |
$5 billion |
|
HCL Technologies |
$2.6 billion |
|
Infosys |
$1.6 billion |
|
Tech Mahindra |
$700 million |
|
Wipro |
$700 million |
Tata Consultancy Services led the gains, adding $5 billion, followed by HCL Technologies at $2.6 billion and Infosys at $1.6 billion. Tech Mahindra and Wipro added about $700 million each.
The Nifty IT index surged nearly 5% in intraday trade, putting it on course for its biggest single-day gain since May 2025. The index’s combined market capitalisation stands at about $250 billion.
The rally in Indian IT stocks came as Asian chipmakers tumbled amid concerns over AI investments. South Korea’s chip-heavy KOSPI plunged 5.5% on Tuesday after Broadcom CEO likened the AI investment frenzy to gambling in a casino. Samsung Electronics fell 7.4%, while SK Hynix slumped 10%. Taiwan’s Taiex and Japan’s Nikkei 225 also declined nearly 2% after US chipmakers slid overnight.
HCL Technologies shares rallied more than 8% intraday, buoyed by better-than-expected earnings for the quarter ended September. TCS also reported quarterly profit that topped analysts’ estimates, as cost-cutting measures and a gradual improvement in contract flow supported growth at Asia’s largest IT services provider.
According to Jefferies, HCL Technologies’ September-quarter growth was led by advanced AI revenues, which rose 28% sequentially to account for 6% of overall revenue.
The brokerage upgraded HCL Technologies to “hold” from “underperform” and raised its FY27-29 earnings-per-share (EPS) estimates by up to 2%, citing higher margins. It expects the company to deliver a 6% recurring EPS compound annual growth rate over FY27-29.
“HCL Tech is among the few large IT firms to offer 5%+ constant currency revenue growth visibility in FY28, which, along with steady margin delivery, should support its 20/25% valuation premium vs TCS/Infosys,” Jefferies wrote in an investor note.
Improving employee additions also signalled a recovery in business momentum. HCL Technologies added 6,450 employees in the second quarter of FY27, its highest quarterly addition in 16 quarters. The company reported a record quarterly net profit of ₹5,132 crore, while its headcount reached an all-time high of 2.30 lakh at the end of September.
TCS also continued to expand its workforce, adding nearly 4,300 employees during the quarter, which took its headcount to a five-quarter high of 5.98 lakh. Its workforce expanded for the third consecutive quarter, marking the first such streak since Q3FY23.
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