Sensex, Nifty Rise as IT Index Outshines; Infosys, Tata Consultancy Services Rally 3-7%
by Sandip Das on 12 January 2024, 4 min read
IT stocks were on a role in the morning session on January 12, 2024, pushing Sensex and Nifty higher. At 10:15 AM, Sensex jumped 563 points at 72,284 level while Nifty gained 160 points and was trading at the 21,806 mark.
The Nifty IT index outperformed, surging over 4.5 percent, a day after Tata Consultancy Services (TCS) and Infosys reported their quarter 3 results.
The top IT gainers included Infosys which jumped 7 percent followed by Coforge, Mphasis, Wipro, and TCS which gained 3-4 percent each.
Also read: Lupin, Oracle Financial Services Top 2 Stocks Which Can Fetch up to 13% Return
On January 11, 2024, TCS reported its third-quarter earnings. The IT major announced an on-year growth in net profit of 8.2 percent, reaching Rs 11,735 crore. It achieved a 4 percent increase in revenue, amounting to Rs 60,583 crore for the third quarter of FY24, despite facing a weak demand environment and seasonal weakness.
TCS achieved a 1.7 percent year-over-year revenue growth in constant currency (CC). It reported a total contract value (TCV) of $8.1 billion, a decrease from $11.2 billion in the previous quarter.
| TCS Earnings (Rs crore) | December 31, 2023 | September 30, 2023 |
| Revenue from operations | 60,583 | 59,692 |
| Other income | 862 | 1,006 |
| Total Income | 61,445 | 60,698 |
| Profit for the period | 11,097 | 11,380 |
On the other hand, Infosys disclosed a consolidated revenue of Rs 38,821 crore for the quarter. The operating margin, affected by furloughs and salary hikes, experienced a sequential slip of 70 basis points, settling at 20.5 percent. Despite this, the company maintained its operating margin guidance within the range of 20-22 percent.
| Infosys Earnings (Rs crore) | December 31, 2023 | September 30, 2023 |
| Revenue from operations | 38,821 | 38,994 |
| Other income | 789 | 632 |
| Total Income | 39,610 | 39,626 |
| Profit for the period | 6,113 | 6,215 |
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.
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