Nifty IT index rises 2%; gains of up to 3% are made by Infy, TCS, Tech Mahindra, and Coforge.

 After the chairman of the US Federal Reserve suggested that the central bank may slow the pace of rate increases, the US market ended higher overnight, driven by gains in technology stocks. Nasdaq Composite increased by 4.4%.

On Thursday, the National Stock Exchange's (NSE) intra-day activity saw the Nifty IT index rise 2%, drawing attention to shares of information technology (IT) companies. The increase follows comments made by the chairman of the US Federal Reserve that the central bank may decrease the rate of interest rate increases.

Overnight, the US market increased, driven primarily by increases in technology equities. The Nasdaq Composite increased by 4.4% on Wednesday.

At home, Coforge and L&T Technology Services saw a 3% increase in share price, while the NSE saw gains of 2% for Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, Persistent Systems, Tech Mahindra, and Larsen & Toubro Infotech. The Nifty IT index was up 2% at 09:24 compared to a 0.60 increase.

With the exception of TCS and LTI, LTM (last twelve month) attrition for all corporations decreased in the July-September quarter (Q2FY23), and all companies have stated that attrition will continue to decline in H2.Due to outstanding execution built on solid order wins from prior quarters, IT companies' growth momentum continued in the second quarter of FY23. The demand climate is still strong, and most businesses reported consistent TCVs (total contract values) in Q2.

"The companies maintained their revenue projection for FY23, taking into account Q3 furloughs and the effects of slower client decision-making across the entire H2 period. Customers want to spend money on programmes that increase revenue and reduce costs, and IT businesses want to profit from both growth drivers. Customers are the analysts at ICICI Securities stated in their Q2 earnings wrap that they were of the opinion that technology would be the last sector to be impacted by weak macros.

Anand Rathi Research analysts have a strong outlook on Infosys, a pioneer in next-generation digital service and consultancy.The brokerage firm stated in its Q2 result update that despite some caution due to the mortgage issue in financial services, caution in hi-tech, and caution in telecom, the company had continued to gain market share in cloud and digital business, had reduced employee attrition from the previous three quarters, and had closed significant deals.

TCS is considered to be well-positioned to navigate the difficult demand environment, according to analysts at Emkay Global Financial Services, given its well-diversified offerings and balanced mix of cost takeout & efficiency projects, growth & transformation projects, and well-balanced offerings.