Nifty IT jumps 2.5%; why are Infosys, Wipro, TCS, Coforge up today?

Indian IT stocks witnessed strong buying momentum today, with the Nifty IT index rallying more than 2.6 per cent even as the broader Nifty 50 remaining largely flat. As of 10:30 AM, the Nifty IT index was up 2.61 per cent at 29,662.15. It was also the top sectoral gainer.

 

Among individuals, all the 10 constituents moved northward, with Infosys and Coforge up 4 per cent each at ₹1,206 an ₹1,443, respectively. LTM shares were trading 3.3 per cent higher at ₹4,121, while Persistent Systems shares gained of 3 per cent to quote at ₹5,253.

 

Wipro (₹206.30), Mphasis (₹2,287), Tata Consultancy Services (₹2,318), HCLTech (1,187.50), and Tech Mahindra (1,478) were up in the range of 1 to 3 per cent. Oracle Financial Services Software were up 0.5 per cent at ₹10,352.

 

 

Today's sharp outperformance in the IT sector was driven by overnight rally in tech stocks on the Wall Street and company-speciific developments back home. The Nasdaq Composite index surged to a record high of 26,934.84 after strong earnings optimism around AI, cloud, and enterprise technology spending. The index settled 0.9 per cent higher.

 

Hariprasad K, SEBI registered research analyst and founder LIvelong Wealth, said that positive commentary from global tech players, including Snowflake’s robust outlook and cloud expansion plans, revived confidence that corporate technology demand remains resilient despite global macro uncertainty.

 

He said that improving sentiment around global tech spending has strengthened expectations of better deal flow and stronger revenue visibility for frontline Indian IT majors. Also, company-specific announcements lifted investor sentiment. 

 

TCS partners French AI firm Mistral

  Meanwhile, TCS has partnered with French artificial intelligence firm Mistral to provide frontier grade AI solution, Mistral Forge, for enterprises across the world. With this, TCS claims to have become the first global system integrator that will leverage Mistral Forge to build custom AI models for enterprises. 

Wipro expands ServiceNow tie-up

  Separately, Wipro announced that it has expanded its partnership with US-based software provider ServiceNow to deploy agentic AI workflows across core enterprise functions such as IT, HR, procurement and cybersecurity. Wipro ​said it will integrate, opens new tab its Wipro Intelligence platform with ​ServiceNow's AI platform to help clients automate workflows across IT, human resources, procurement and cybersecurity functions.

 

The Bengaluru headquartered company said the tie-up ​would help enterprises scale AI adoption while ​improving operational efficiency. 

 

The partnership comes as Indian IT firms race ‌to ??bolster their artificial intelligence offerings amid growing investor concerns that advances in AI could disrupt traditional outsourcing and technology services work.  Nifty IT index: Technical view  Kunal Kamble, senior technical research analyst at Bonanza, said that the Nifty IT index is currently forming an inverse Head and Shoulders pattern on the hourly time frame. A decisive breakout is seen above the neckline of this pattern and has trigger further upside momentum in the index. Such a move is likely to positively impact heavyweight IT stocks that share a high correlation with the index, including Infosys, Tata Consultancy Services, and HCL Technologies.   

"Technically, sustaining above the 29,650 mark may open the door for a further recovery towards the 31,280 zone in the near term. However, the current price action appears to be a retracement within the broader trend rather than a complete trend reversal," he said.

 

"On the downside, a breach below 28,800 could once again invite selling pressure across the Nifty IT index and associated IT stocks, potentially weakening the ongoing recovery structure," he added.  

======================= 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.