Market narratives can change quickly, and this week's performance of IT stocks is a case in point. Improved earnings and a downturn in AI-linked stocks, amid multi-billion-dollar investments failing to generate the returns stakeholders had hoped for, have helped IT stocks add Rs 2.60 lakh crore in market value. The index has risen 12%, making it the best-performing index this week.
For the week, Tech Mahindra led the index with a gain of over 16%, followed by Wipro at 13%. TCS, Infosys and HCL Tech each advanced 12%. The rally is significant given that FIIs and other investors had fled IT stocks earlier this year as AI-linked stocks gained momentum amid heightened concerns over slowing demand and earnings.
