India’s Nifty IT index rose 2.3% on Friday, emerging as the biggest gainer among sectoral indices. The rally came amid media reports that OpenAI’s annualized revenue stood at roughly $50 billion at September-end, around $20 billion lower than previously indicated.
With India seen as an anti-AI trade and Indian IT companies still catching up in the AI race, the development may have been received positively by investors, pushing stocks higher even as US visa concerns lingered. The benchmark Nifty 50 index rose over 1%.
Shares of Tata Consultancy Services (TCS), Infosys, Wipro and HCL Technologies rose up to 4% on Friday. TCS also reported its September-quarter (Q2FY27) results, which threw up no major negative surprises. Sequential constant-currency revenue growth was 0.5%, marginally ahead of consensus estimates, led by manufacturing, hi-tech and banking, financial services and insurance (BFSI).
Regional markets and the consumer business were the weak spots. International business grew better than anticipated, at 1.2% sequentially. Management expects international markets to maintain their current momentum, supported by the deal pipeline. Conversely, deferrals of Indian projects dragged overall growth.
TCS’s Q2FY27 demand commentary indicated little meaningful change from the previous quarter, with clients continuing to make cautious decisions on discretionary programmes. Total contract value (TCV) of deal wins rose 1.1% sequentially to $9.6 billion but fell 4% year-on-year. The deal TCV excludes the five-year strategic partnership with Porsche AG and the Best Buy deal.