TCS Shares up 6%. Infosys up 3%. Why IT companies are up today?

13 Jul 2026 , 01:11 PM

TCS Leads IT Rally After Multi-Million Dollar ABB Deal

Tata Consultancy Services (TCS) shares surged more than 6% on Monday, emerging as the top performer in the NIFTY IT index after the company announced a multi-million-dollar, multi-year agreement with ABB to transform its global network operations using artificial intelligence (AI).

The rally in TCS also lifted the broader IT sector, with the NIFTY IT index climbing over 4%, significantly outperforming the benchmark NIFTY50, which traded largely flat during the session.

The strong buying interest reflects growing investor confidence in India’s IT sector following better-than-expected quarterly earnings, large deal wins, and increasing demand for AI-powered digital transformation services.

TCS to Transform ABB’s Global Network Operations

As part of the strategic partnership, TCS will expand its engagement with ABB from managing infrastructure and applications to delivering end-to-end global network operations through an integrated Network-as-a-Service (NaaS) model.

The project is centered around ABB’s Future Network Model programme, which aims to standardize and modernize the company’s global digital infrastructure.

Under the agreement, TCS will:

• Manage ABB’s global network operations.
• Build an AI-driven, secure network ecosystem.
• Improve operational efficiency and user experience.
• Strengthen cybersecurity and regulatory compliance.
• Coordinate ABB’s multi-vendor global network infrastructure.

The company said AI will play a central role in enabling self-improving, intelligent, and resilient network systems for ABB’s worldwide operations.

TCS Announces Leadership Reshuffle

Alongside the deal announcement, TCS unveiled a significant leadership restructuring aimed at accelerating growth across strategic business areas.

The company has created five new business units, including:

• ServiceNow Practice
• Travel & Transport
• Energy & Utilities
• U.S. West Coast Business
• Global Autonomous Businesses

The banking and financial services vertical—TCS’s largest revenue contributor—has also been reorganized into separate U.S. East and U.S. West business units.

Additionally, new leadership appointments have been made across cybersecurity, UK and Europe life sciences, communications, and media businesses.

The restructuring comes as IT companies increasingly adapt to rapid advancements in artificial intelligence and evolving client requirements.

IT Stocks Rally Across the Board

The positive sentiment extended beyond TCS, with all constituents of the NIFTY IT index trading in positive territory.

Company	Share Price	Gain
Tata Consultancy Services (TCS)	₹2,196.60	+6.17%
HCLTech	₹1,231.50	+5.79%
Tech Mahindra	₹1,522.40	+4.65%
LTIMindtree	₹4,210.90	+4.30%
Infosys	₹1,110.10	+3.94%
Wipro	₹179.49	+2.30%

Share prices as of July 13 13:00 Hrs on NSE

The NIFTY IT index gained more than 4%, making it one of the best-performing sectoral indices during the trading session.

Strong Q1 Earnings Boost Sector Sentiment

Investor confidence received a major boost after TCS recently reported better-than-expected earnings for the April-June quarter.

The company benefited from:

• Higher technology spending by banking clients.
• A robust pipeline of AI-related projects.
• Favorable currency movement due to a weaker rupee.

These factors reinforced expectations of improving demand for IT services despite concerns over global economic uncertainty.

LTIMindtree’s AI Partnership Adds Momentum

Adding to the positive sentiment, LTIMindtree reported a 17.1% year-on-year increase in net profit for the June quarter, reaching ₹1,468.6 crore.

The company also announced a strategic partnership with AI company Anthropic to accelerate enterprise adoption of:

• Claude
• Claude Code
• Claude Cowork

The collaboration will help enterprises deploy AI solutions across software engineering, application modernization, site reliability engineering, observability, and business workflows.

LTIMindtree plans to leverage its AI delivery platform, BlueVerse, along with its AI1000 talent development programme and a dedicated Claude Center of Excellence, to support AI adoption across industries including banking, financial services, manufacturing, consumer, and technology.

AI Becomes the Next Growth Driver for Indian IT

Artificial intelligence continues to reshape the Indian IT services industry, prompting companies to invest heavily in AI capabilities and strategic partnerships.

As clients increasingly seek higher productivity, faster software delivery, and lower operational costs, IT companies are positioning themselves as long-term AI transformation partners.

The latest developments at TCS and LTIMindtree underscore the sector’s focus on AI-led innovation, digital infrastructure modernization, and enterprise automation.

The sharp rally in TCS shares and the broader NIFTY IT index reflects renewed optimism surrounding India’s technology sector. A landmark AI-driven deal with ABB, organizational restructuring, strong quarterly earnings, and expanding AI partnerships have strengthened investor confidence in leading IT companies.

With digital transformation and artificial intelligence becoming key growth catalysts, the Indian IT sector appears well-positioned to capitalize on the next phase of enterprise technology spending.

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