Benchmark indices Sensex and Nifty erased their losses to trade in green on October 30 due to various reasons, including buying in IT shares.
At 11:38 am, the Sensex was up 404.83 points or 0.55% at 74,555.87, and the Nifty was up 124.65 points or 0.54% at 23,061.40. About 1,201 shares advanced, 2,499 shares declined, and 176 shares were unchanged. Sensex rose 450 points from day's low while Nifty reclaimed psychologically important 23,050-mark.
The IT index gained 1.7% amid a drop in global artificial intelligence-linked stocks in Asia on worries that huge and rising AI spending may not deliver sufficient returns.
Analysts view Indian IT companies as relatively defensive beneficiaries when AI-linked stocks sell off, as enterprises may favour cost-cutting, automation and outsourcing over expensive in-house AI investments.
Stocks in the information technology space also traded higher after global IT services giant, Cognizant, reported stable results for the quarter-ended September. Its revenues grew 4.8% on year in constant currency to $5.66 billion. This was largely in line with the Street's estimate of $5.65 billion. Bookings increased 4% to $28.7 billion, and these included three large deals with a total contract value of $100 million or more.