Optimism is returning for India’s information-technology companies as easing odds of a recession in the US and the emergence of artificial intelligence as a potential new source of revenue drive a rebound in their stocks.
The NSE Nifty IT Index has climbed 18% from an April low, adding about $46 billion in market value. The 10-member gauge has turned the rally up a notch in July, and is on track to outperform the MSCI World Information Technology Index for the first time in seven months.
Gains picked up after Asia’s biggest software services exporter Tata Consultancy Services Ltd. last week reported better-than-expected profits for the latest quarter. Its shares climbed, along with those of peers including Infosys Ltd., which is scheduled to report today.
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