Indian equity markets closed higher as information technology stocks led a broad-based rally, buoyed by Infosys upgrading its revenue outlook. The positive guidance from one of the country’s largest IT services companies reignited investor confidence in a sector that has faced uncertainty over global demand and cautious client spending in recent quarters. As heavyweights in the IT pack gained momentum, benchmark indices followed suit, reflecting renewed optimism around earnings visibility and deal flow.
Infosys’ improved outlook was interpreted as a sign that demand conditions, especially in key markets like the United States and Europe, may be stabilising. The company pointed to better execution, a resilient order book and growing traction in digital transformation and artificial intelligence-led projects. For investors, this signalled that the worst of the slowdown could be behind the sector, at least for companies with strong balance sheets and diversified client portfolios.
The rally was not limited to a single stock. Other major IT firms moved higher in sympathy, helping the IT index outperform the broader market. Since IT stocks carry significant weight in benchmark indices, their gains provided a strong push to overall market performance. Improved sentiment in the sector also encouraged buying interest across other export-oriented and growth-linked stocks.
Market participants noted that the upgraded outlook came at a time when valuations in the IT sector had become more attractive after months of underperformance. With inflation showing signs of easing in key economies and expectations of stable interest rates, investors appear more willing to bet on a gradual recovery in technology spending. Infosys’ commentary added credibility to this view, acting as a trigger for fresh inflows.
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