India's IT companies gained 4% on Monday following better-than-expected results from Wipro and HCLTech, signalling stability in demand.

Wipro's shares rose 13.7% to their highest since April 2022, and were on track for their best day since July 2020. HCLTech shares rose over 5% to hit a record high.

The 10-member Nifty IT index climbed 4% to a nearly two-year high, powering the benchmark Nifty 50 index to a fresh record high.

Last year, Indian IT companies struggled as clients favoured cost-oriented deals over growth-oriented ones.

There is "some stabilitization now from revenue deceleration," Wipro CEO Thierry Delaporte said in a post-earnings media conference on Friday.

Wipro is starting to see early signs of growth in its consulting vertical, led by double-digit sequential growth in order bookings at Capco, a firm it acquired in 2021.

Consulting "possibly raises hopes for growth normalisation in fiscal 2025," Emkay Global analysts said.

 

 

(Reporting by Navamya Ganesh Acharya and Kashish Tandon in Bengaluru; Editing by Dhanya Ann Thoppil)