Nifty IT extends winning streak to 3rd day, up 3%; TCS, Infosys lead gains

IT stocks bucked market weakness today, with the Nifty IT index surging more than 3 per cent in trade as heavyweights TCS and Infosys led the rally. Today's rally marked the third consecutive session of gains for the IT stocks even as the broader markets remained under pressure. 

As of 10:10 AM, Nifty IT Index was the top sectoral gainer, up 935 points, or 2.13 per cent, at 30,789. In comparison, the Nifty 50 index slipped 0.4 per cent. 

In the past three sessions, the Nifty IT index has climbed as much as 6 per cent, while the Nifty index has declined 2.50 per cent. From its May lows, the Nifty IT index has shown a meaningful recovery, gaining nearly 15 per cent.  

 

All the 10 constituents of the Nifty IT were trading firmly in the green, with Infosys emerging as the top mover, up more than 4 per cent at ₹1,252. It was followed by TCS, which was up 3.5 per cent at  ₹2,377. 

HCLTech, Mphasis, LTM, Coforge, Persistent Systems were up in the range of 2 to 3 per cent to trade at ₹1,227.50, ₹2,379, ₹4,312, ₹1,500.50 and ₹5,527 respectively.  READ STOCK MARKET UPDATES LIVE

What's driving the rally in IT stocks?

The heavy buying interest in Indian IT stocks mirrored a global rally in AI-linked shares after US-based AI data cloud firm Snowflake’s robust outlook and cloud expansion plans revived confidence that corporate technology demand remains resilient despite global macro uncertainty. 

Overnight, the tech heavyweight Nasdaq Composite index touched a record high of 27,190.21 also settled at recorded a record closing high. 

According to CLSA, the so-called "SaaSpocalypse" — fears that AI will hollow out demand for software-as-a-service (SaaS) platforms and the IT services companies that implement them — may be overblown.  

It noted that most SaaS companies have either maintained or increased their revenue and margin guidance for the upcoming fiscal year and beaten consensus earnings per share (EPS) expectations in the latest reported quarter — implying no visible negative impact of AI on SaaS demand yet. 

Sandeep Shah, director, Equirus Securities, said that rising token cost is making many large enterprises cautious towards their AI led infra. This, in one way, requires tight IT system integration and these services are better provided by system integrators and IT services providers, considering their experience in managing complex IT systems. Besides, they also have deep understanding of business workflows of large enterprises.  

 

"There is also a growing belief from investors that large enterprises may shift their IT budgets a bit from AI to IT services and software. This is an indicator of rising demand for system integrators. However, uncertain macro will likely result in measured spending in these areas in near to medium term, but it can create green shoots for demand across many industries," he said.  Coforge launches agentic AI platform  

In another related development, midcap IT company Coforge has announced the launch of ‘Nexa Agentic AI Platform’, a next generation insurance business platform designed for the global insurance industry, marking a significant advancement in how insurers operationalize AI to drive measurable business outcomes.

  READ | Analysts split on Cyient after $218-mn TAO Digital acquisition; stock up 2% 

Nifty IT index: Analyst view

Harish Jujarey, AVP, head, technical equity research, Prithvi Finmart, said that after Nifty IT index has decisively crossed its 50-day moving average (DMA) for the first time since January 2026, signaling improving strength in the short to medium term. The recovery is not limited to mid-cap IT stocks; large-cap names have also started gaining momentum, which could provide further support for the index to move higher toward the 32,000 level and potentially extend the rally toward 33,000.  "From a seasonal perspective, the IT sector has historically performed well during June and July. This favorable seasonality, coupled with the recent improvement in price action, suggests that the sector may continue to witness a relief rally in the near term," he said. 

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