Infosys shares rally 2%: Nilekani says AI won't replace firm; Tech Mahindra shares jump over 3%- key points

Shares of IT services companies were trading in the green on Wednesday, June 24, with the NIFTY IT index trading around 1% higher. Tech Mahindra shares rallied as much as 3.41% to ₹1,464 apiece on the NSE, while Infosys shares were trading 2% higher at ₹1,049.80 apiece.

Tech Mahindra

On June 23, Tech Mahindra announced the expansion of its partnership with Telefonica Germany to build a private cloud platform.

This is aimed at driving cloud-native transformation and providing Platform-as-a-Service (PaaS) for technology and enterprise business growth, Tech Mahindra said in a release.

"The partnership will combine Tech Mahindra's platform engineering and AI-first operations with Telefonica Germany's telecom infrastructure modernisation objectives to create PaaS, laying the foundations for a full-scale private cloud," the release further said.

The multi-year engagement will focus on enabling a scalable, open, and future-ready digital infrastructure foundation to modernise telecom and enterprise workloads, it added.

Tech Mahindra will also leverage AI-driven automation, cloud-native orchestration, infrastructure-as-code frameworks, and self-service platform management capabilities to support the platform as a service.

The platform is designed to enhance AI-first automation, operational flexibility, and resilience while supporting both traditional and infrastructure services for telecom and enterprise businesses across Germany.

Infosys

At the company's 45th Annual General Meeting (AGM), Infosys Chairman Nandan Nilekani said on Tuesday that artificial intelligence (AI) will not replace companies like Infosys but amplify those moving with purpose and speed, asserting that the Bengaluru-headquartered company "is more relevant than ever" and eagerly eyeing around $300-400 billion in AI opportunities by 2030.

Nilekani said every major technology transition evokes questions on relevance and ability to protect growth and margins. AI's larger and disruptive technology transition only means that such questions are louder and doubts more insistent, he said.

"Moreover, the existential question that is being asked of us is, if coding becomes automated, then why are we needed at all? More than three years after GenAI was launched, Infosys is more relevant than ever before and well-positioned for the decade ahead," he said.

The AI deployment gap in large enterprise clients is real, and closing that gap is where the work is, he said. Nilekani exuded confidence that AI will not replace companies like Infosys; rather, it will reward companies that remain purpose-driven and agile.

"AI will not replace companies like ours. It will amplify those who move with purpose and adapt with speed," Nilekani said.

Nilekani explained that enterprise solutions demand rigorous testing, resilient architecture, foundational cybersecurity, and strict data governance that cannot be outsourced to external platforms.

The AI revolution has made legacy modernisation urgent, positioning Infosys to capitalise on this structural shift in technology, the chairman added.

NIFTY IT snapshot

At last count, the NIFTY IT index was trading 1.37% higher compared with its previous close, with nine of its 10 constituents advancing. Wipro was the sole laggard, slipping 0.65%, while the rest of the index traded in positive territory.