Nifty IT index jumps 2.8% after strong TCS Q3 results. Experts see THIS Accenture connect

The Nifty IT index surged nearly 3% on Friday, driven by strong December quarter earnings reported by Tata Consultancy Services (TCS). Following the announcement, TCS share price rallied over 4%, leading the gains within the Nifty IT sector.

All components of the Nifty IT index traded positively, with TCS, LTIMindtree, Tech Mahindra, Wipro, Infosys, and Persistent Systems emerging as the top performers. These stocks recorded gains ranging from 1% to 4%, reflecting strong investor sentiment across the sector.

Meanwhile, the Indian stock market traded lower, weighed down by weak global cues. The Nifty IT index was the sole sectoral index to remain in positive territory, while all other sectoral indices faced selling pressure.

TCS share price rally, following its strong Q3 results, bolstered sentiment across the IT sector and drove gains in the Nifty IT index. Additionally, analysts noted that upbeat earnings reported by Accenture last month, further supported investor confidence in Indian IT stocks.

“After the better-than-expected Wall Street estimates on Accenture results, the Indian IT companies were expected to deliver better quarterly numbers in Q3FY25. After the strong TCS Q3 results in 2024-25, this buzz has received a further boost, and Dalal Street is expecting the same kind of Q3 results in 2025 from other IT majors like HCL Technologies, Infosys, Wipro, etc. This is because Indian IT companies receive a good amount of business from the US markets, and Accenture has a significant role in this,” said Anshul Jain, Head of Research at Lakshmishree Investment and Securities.

As demand for Accenture services via clients adopting AI-powered tools is expected to continue, we are seeing buying buzz in the Indian IT stocks, and this rise in the Nifty IT index is an example of this, he added.

TCS Q3 Results

Tata Consultancy Services (TCS), the largest IT services company in India, reported a net profit of ₹12,380 crore in the third quarter of FY25, registering a growth of 4% from ₹11,909 crore in the previous quarter. The company’s revenue in Q3FY25 eased 0.4% to ₹63,973 crore from ₹64,219 crore, QoQ. Revenue in USD terms was at $7,539 million. EBIT increased 1.2% QoQ to ₹15,657 crore, while EBIT margins grew by 40 bps sequentially to 24.5%.

TCS declared a third interim dividend of ₹10 and a special dividend of ₹66 per equity share. TCS dividend record date is January 17 and the dividend payment date is February 3.

At 9:50 AM, TCS shares were trading 4.07% higehr at ₹4,201.10 apiece on the BSE.

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