Nifty IT jumps 3.5% from day's low; TCS, Infy, Wipro shine on Budget boost

Budget 2026 has proposed a tax holiday till 2047 for IT companies providing cloud services using India-based data centres.

Shares of IT companies were seen trading on a positive note and outperforming the broader market trend on Sunday post the Union Budget 2026 announcements.  The NSE Nifty IT index was up 1.5 per cent at 38.593 levels. In comparison, the Nifty 50 index was down 1 per cent at 25,080.  The Nifty IT index has gained 3.5 per cent from its intra-day low of 37,298 led by a strong rebound in index heavyweights - Infosys, TCS and Wipro after the finance minister Nirmala Sitharaman in a boost for the IT sector announced tax sops for cloud services and data centres.  Among individual stocks, HCL Technologies stock gained 4.5 per cent from the day's low. Similarly, CoForge, Wipro and Infosys also rallied around 4 per cent each from the respective day's low.  At 2 PM, Wipro was up 3.5 per cent at ₹245. TCS, LTI Mindtree and Mphasis were up around 2 per cent each. Persistent Systems and Infosys were up 1 per cent each.  READ STOCK MARKET UPDATES TODAY LIVE  The Finance Minister with an aim to boost investment in centres has proposed a tax holiday till 2047 in Budget 2025 for foreign companies that provide cloud services globally using data centres in India.  Garima Kapoor, Deputy Head of Research & Chief Economist at Elara Capital believes that proposed Budget policies and tax holiday are encouraging moves.  "Budget policies and taxation are aligned towards making India an export hub. The budget focuses on fiscal consolidation while maintaining its thrust on new age sectors and export oriented sectors. Among key announcements, the tax holiday for cloud services for data centres and customs duty exemption on nuclear power components is encouraging," says Kapoor.  Raju Vegesna, Chairman & Managing Director, Sify Technologies expresses optimism on the future growth of the IT sector amid Budget proposals.  ALSO READ | Why did One 97 Communications, operator of Paytm jump 10% post Budget?  "The Union Budget for 2026-27 emphasizes accelerating India's AI journey and strengthening the country's data centre infrastructure. This focus is timely and forward-looking. The Budget combines long-term tax incentives for cloud and data centre investments with a broader push for digital infrastructure and innovation. It recognizes that high-quality computing capacity is now crucial to India’s growth, just like roads and power," says Vegesna.  As a home-grown, AI-ready data centre platform with a growing presence in India’s key digital hubs, we see these measures as a positive sign for sustained, cost-effective capacity creation. These initiatives will allow us to continue investing in energy-efficient, high-density infrastructure that supports India's AI workloads, protects data sovereignty, and helps global and domestic customers run their most demanding applications in India, adds Vegesna.