NIFTY IT index zooms nearly 4% powered by over 6% surge in TCS shares, here is why

The information technology (IT) shares were witnessing strong buying interest in noon deals on Monday, July 13, with all 10 shares in the NIFTY IT index trading higher led by the country's largest IT company Tata Consultancy Services.

The measure of IT shares on the National Stock Exchange (NSE), NIFTY IT index, rose as much as 3.75% to hit an intraday high of 29,060. IT shares have been witnessing buying interest after TCS surprised analysts by posting better than anticipated June quarter earnings and a robust pipeline of AI deals.

The sentiment towards IT stocks improved further after LTM over the weekend reported a 17.1% jump in its June quarter net profit to ₹1,468.6 crore compared to the year-ago period.

LTM added that that it has partnered with Anthropic, the frontier AI company behind Claude, to accelerate enterprise-scale adoption of Claude, Claude Code and Claude Cowork across engineering, modernisation, and business workflows.

LTM will combine Claude, Claude Code and Claude Cowork with its enterprise implementation expertise to help clients move from pilots to production with market-leading productivity, throughput, and quality, it said.

The company will specifically bring this expertise and capability to Banking, Financial Services, and Insurance (BFSI), Hi-Tech, Consumer, and Production Industry domains.

The firm highlighted three focus areas for the partnership, which will comprise LTM BlueVerse, its AI delivery fabric; LTM AI1000, its talent enablement program; and Claude Center of Excellence (CoE).

LTM BlueVerse AI Delivery Fabric, the L&T subsidiary said, will serve as the enterprise implementation layer for Claude adoption, integrating Claude and Claude Code into delivery workflows across AI-led software engineering, application modernisation, agent orchestration, Site Reliability Engineering (SRE), Observability, and Chaos Engineering.

In a separate development, TCS on Monday said that it has signed a multi-million-dollar deal with ABB to transform global network operations with AI.

“TCS will help ABB improve user experience, enhance operational efficiency, strengthen security and compliance, scale service delivery, and prepare for next-generation digital operations. At the core of this engagement is ABB’s Future Network Model programme, an enterprise-wide initiative to transform its global network into a standardized, centrally managed digital infrastructure,” the Mumbai-based company said in a regulatory filing.

“As a strategic programme partner, TCS will design, integrate, and run ABB’s global network ecosystem as a secure, modern, and AI-driven service. It will also orchestrate ABB’s multi-vendor environment to ensure seamless, standardized operations worldwide,” the company added.

As of 12:45 pm, NIFTY IT index traded 3.6% higher at 29,018, outperforming the NIFTY50 index which was trading on a flat note.