Stock market today: Shares of Indian information technology (IT) companies rose in trade on Wednesday, January 22 despite high volatility in the stock market. Today's rise in IT stocks pushed the Nifty IT pack higher, making it the best-performing sectoral index.
IT heavyweights Wipro, Tata Consultancy Services and Infosys rose 1.5% to 2% in early trade on the NSE today, emerging as the top gainers in the Nifty IT pack.
The Indian IT stocks remained under pressure over the past few days with investors watchful for the change of guard in the US as Donald Trump took over as the President of the United States.
Some analysts, however, had signalled positive prospects for IT and defence stocks, with Donald Trump taking oath as US President. Ross Maxwell, Global Strategy Operations Lead at VT Markets had said that Asia's economies may face volatility due to Trump's trade wars and tariffs, but some sectors — like tech and defence — could thrive.
The current rally in Indian IT companies can be attributed to three key factors, according to Prashanth Tapse, Senior VP — Research at Mehta Equities.
Firstly, strong Q3 results from major Indian IT players like TCS and Wipro have fueled optimism. Secondly, the upcoming Q3 results from two prominent IT firms, Coforge and Persistent Systems, are also contributing to the positive momentum. Lastly, there is a prevailing positive sentiment around Indian IT and pharma companies, which analysts believe are largely insulated from Donald Trump's protectionist tariff policies.
After strong Q3FY25 results by the large-cap Indian IT majors (TCS, Wipro, HCL Tech and Infosys), two big IT firms, Coforge and Persistent Systems, will declare their Q3 results today.
The market expects substantial Q3 numbers from these two companies, fueling bull sentiment on IT stocks, said Tapse. Regarding Trump's protectionist tariffs, the market expects Indian IT and pharma companies to remain insulated from the trade war, as the Indian government has signalled its willingness to cooperate with the US government on tariff matters.
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