Indian IT rally lifts Nifty IT 17% amid AI weakness
While global AI stocks struggled on Friday, Indian IT companies had a good day.
The Nifty IT index was marginally higher at 32,111.75 by midday, making it a 17% surge just this month.
Big names like HCL Technologies, Infosys, and TCS all saw their shares rise 1% to 2%, standing out even as tech giants abroad faced losses over concerns about overspending in AI.
Earnings and valuations buoy Indian IT
So what's keeping Indian IT afloat? Strong earnings reports and smart investing choices are helping.
With rising raw material costs hurting other sectors, many investors are shifting their focus to reliable, cost-effective IT firms.
Analysts say India's tech companies have extremely cheap valuations and in-line earnings releases by major players in the sector, making them an appealing pick when the global market gets shaky.