Nifty IT Index

The weakness in IT stocks was followed by the US Federal Reserve's decision to hike the key lending rate by 0.25 basis points to 3.75-4 per cent.

Indian IT stocks have been one of the biggest casualties of AI boom, having lost 21 per cent on a year-to-date basis.

n the IT basket, stocks registered declines in the range of 5-9 per cent. Based on the day's low, Coforge emerged as the biggest loser with an 8.7 per cent fall.

In the IT basket, stocks registered declines in the range of 2-4 per cent. Infosys emerged as the biggest loser with a 3.8 per cent fall.

So far this month, the IT index remains unchanged. In July, it recorded its best gain in six months following a 17 per cent rise.

IT stocks rallied on Friday after Nvidia's strong revenue forecast reinforced optimism around the artificial intelligence (AI) boom.

In the past one week, Nifty IT index has corrected 4.8 per cent, compared to 1.2 per cent decline in the Nifty 50.

IT stocks in demand: Tata Consultancy Services (TCS), Tech Mahindra, LTM, HCL Technologies and Mphasis gain 3 per cent each in intra-day deals on Friday.

Technology stocks witnessed some profit-taking on Friday following a 19% rally in the Nifty IT index this July.

AI trade is unwinding from the inside. The largest hyperscalers are funding capex with debt at a scale that has turned free cash flows negative said Manish Bhandari, CEO at Vallum Capital.

The Nifty IT index rebounded over 21 per cent after hitting its 52-week low of 25,699.10 on July 1, 2026.

Thus far in the month of July, the Nifty IT index rallied 15 per cent, as compared to 0.6 per cent rise in the Nifty 50.

The sharp gains in IT stocks today follow easing valuations, a decent Q1 show, and an improving outlook after a sharp selloff this year.

On the broader market outlook, Ajit Mishra, SVP-Research of Religare Broking says the Nifty remains in consolidation mode, with key support at 23,600. On the upside, bullish pivot stands at 24,600.

However, despite recovery from lows, the Nifty IT index underperformed the market by falling 22 per cent, as against a 7.2 per cent decline in the Nifty 50 thus far in CY2026.

Gains in IT index were led by large-cap IT stocks, with HCLTech, LTIMindtree and Persistent Systems among the key contributors

At 12:44 PM on Monday, the Nifty IT index was the top gainer among sectoral indices, up 4.24 per cent, as compared to 0.01 per cent rise in the Nifty 50.

At 09:38 AM on Friday, the Nifty IT index was the top gainer among sectoral indices, up 1.8 per cent, as compared to a 1 per cent rise in the Nifty 50.

In the past four trading days, IT index outperformed the market by soaring 9 per cent, as against a 2 per cent gain in the Nifty 50.

The Nifty IT currently quotes around 20 per cent below its 200-DMA. TCS, Infosys, Wipro and HCL Technologies are down in the range of 21-26 per cent form respective 200-DMAs.