TCS Shares Rally on ABB Deal While Global Chip Stocks Tumble

Tata Consultancy Services (TCS) shares surged 6% on Monday following a multi-year deal with global industrial giant ABB. The partnership focuses on transforming ABB’s operations using artificial intelligence, providing a strong tailwind for the domestic IT sector. This momentum helped the Nifty IT index climb 3%, while other major firms like HCLTech and Infosys also rallied. Meanwhile, Indian retail banking showed resilience, with Fino Payments Bank hitting a 20% upper circuit after reporting a 3.5-fold increase in loan referral disbursals to ₹240 crore and maintaining a customer base of 1.8 crore users.

In stark contrast, global chip stocks experienced a sharp correction on July 13, 2026. SK Hynix shares plunged 15.4% on the Korea Exchange following its recent high-profile Nasdaq debut, which triggered massive profit-taking and raised questions about the sustainability of current AI-driven valuations. This volatility, compounded by rising global oil prices, led to a 9% drop in South Korea’s Kospi index. Other major semiconductor firms, including Intel, AMD, and Applied Materials, also saw share prices fall by approximately 4% as investors adjusted portfolios to account for mounting macroeconomic pressure.

The current market environment reflects a clear split between domestic Indian growth stories and the global semiconductor sector's correction. While international investors are reassessing the valuation gap between U.S.-listed ADRs and domestic markets, Indian firms demonstrating solid order book growth or AI partnership expansion remain attractive. Experts suggest that investors should focus on companies with proven fundamentals as quarterly earnings reports are expected to clarify whether the rapid growth driven by AI hardware demand can be sustained through the remainder of the year.