TCS Leads Weekly Gainers After Earnings; Tech Mahindra, Bajaj Finance, HCLTech Also Shine

Mumbai, July 19: Information technology stocks dominated Dalal Street’s list of weekly gainers as a strong start to the June-quarter earnings season boosted investor confidence in the sector, with Tata Consultancy Services (TCS) emerging as the biggest winner after delivering better-than-expected results. Robust deal wins, growing artificial intelligence (AI)-driven revenue and resilient demand from banking and financial services clients lifted sentiment across the IT pack, helping Tech Mahindra and HCLTech also finish among the top performers during the week.

Beyond technology, Bajaj Finance featured among the week’s biggest gainers after brokerages reiterated their positive stance on the stock, citing its diversified lending franchise, consistent execution and healthy growth prospects. Analysts also see further upside in the stock as strong retail credit demand continues to support earnings.

Tata Consultancy Services: Tata Consultancy Services share price rose 9.67% during the week gone by to Rs 2,269, clocking a market cap of Rs 8,20,944 crore.

Tata Consultancy Services emerged as the week’s top gainer after reporting better-than-expected June-quarter revenue last week, supported by demand from banking clients and momentum in artificial intelligence (AI)-led deals.

Brokerages said the results reinforced confidence in the company’s growth outlook, with AI-driven
business, robust demand in the banking, financial services and insurance (BFSI) segment, strength in high-tech verticals and improved regional performance expected to support earnings in the coming quarters. TCS said its annualised AI revenue rose to over $2.6 billion from $2.3 billion in the previous quarter, reflecting faster enterprise adoption of AI across industries.

The company reported a 14% year-on-year increase in revenue to Rs 72,275 crore ($7.58 billion), while Chief Executive K Krithivasan indicated that demand from the manufacturing and life sciences sectors is likely to recover in the second quarter. Separately, TCS unveiled a leadership restructuring and created five new business units, including dedicated teams for the U.S. West Coast market and its ServiceNow practice, as it sharpens its AI strategy amid rapid technological changes reshaping the $315-billion Indian IT services industry.

Look Ahead: Investors will now shift their focus to whether Tata Consultancy Services can sustain the momentum from its strong June-quarter performance. Key monitorables in the coming quarters include the pace of AI deal conversions, discretionary spending by global clients, recovery in manufacturing and life sciences demand, and the durability of growth in the banking, financial services and insurance (BFSI) segment. The Street will also watch for progress on the company’s new business units and leadership overhaul, as well as signs that AI-led revenues continue to scale.

Tech Mahindra: Tech Mahindra share price rose 8.12% during the week gone by to Rs 1,573, clocking a market cap of Rs 1,54,119 crore.

Tech Mahindra finished the week among the top gainers after reporting better-than-expected June-quarter revenue, reinforcing expectations that it could emerge as one of the fastest-growing Indian IT services companies over the coming quarters.

The company reported net new deal wins of $1.08 billion, up from $809 million a year ago, extending its streak of quarterly order bookings above the $1 billion mark to three consecutive quarters. Analysts said the strong deal pipeline, coupled with improving operating margins, provides greater earnings visibility and supports a sustained recovery in growth. Following the results, brokerages raised their FY27 revenue growth forecasts, citing healthy execution, robust demand across key verticals and management’s expectation that revenue growth will outpace the broader industry this year.

Look Ahead: Investors will monitor the conversion of the company’s strong deal pipeline into revenue, further margin expansion and the pace of AI-led project wins. The Street will also assess whether Tech Mahindra can maintain its growth premium over peers as enterprise technology spending gradually recovers and the Indian IT sector navigates an evolving demand environment.

Bajaj Finance: Bajaj Finance share price rose 3.51% during the week gone by to Rs 1,056, clocking a market cap of Rs 6,57,281 crore.

Bajaj Finance finished among the week’s top gainers as brokerages reiterated their bullish stance on the stock, seeing up to 15% upside from current levels. Analysts remain optimistic on the lender’s strong retail franchise, diversified loan portfolio spanning consumer finance, two-wheelers, housing and small businesses, and its consistent execution in a competitive lending environment.

Look Ahead: Investors will closely track loan book growth, asset quality, net interest margins and funding costs, while management commentary on credit demand and the interest-rate outlook will be key. Analysts believe Bajaj Finance remains well placed to benefit from sustained retail credit demand, with its diversified business model expected to support earnings growth over the coming quarters.

HCLTech: HCLTech share price rose 3.42% during the week gone by to Rs 1,204, clocking a market cap of Rs 3,26,698 crore.

HCLTech was among the week’s top gainers after reporting better-than-expected June-quarter earnings, supported by robust demand from financial services clients and the tailwind of a weaker rupee. The company also announced a new seven-year agreement with The Guardian Life Insurance Company of America to accelerate AI-led modernisation across the insurer’s technology and operations, while retaining its full-year revenue guidance. Adding to investor optimism, HCLTech unveiled its entry into the data centre business and reported a record $2.4 billion in first-quarter deal wins, the highest ever for the period. The strong order pipeline underscored healthy client demand despite an uncertain macro environment.

Look Ahead: Investors will watch the conversion of the record deal pipeline into revenue, execution of large AI-led transformation projects and the company’s expansion into the data centre business. Discretionary technology spending, margin sustainability and demand trends across key verticals will also be closely monitored.

Source: NSE