Nifty IT Rebounds Over 4% As Infosys, TCS And HCLTech Share Price Lead Sector Recovery

Information technology stocks staged a strong comeback on 2 July, lifting the Nifty IT index more than 4% after it had declined for four consecutive trading sessions. The recovery was driven by gains in large-cap software companies, helping the sector emerge as the top performer on the National Stock Exchange during early trade.

At around 11:20 am, the Nifty IT index was trading 4% higher, while the benchmark Nifty 50 advanced 0.41%. The rally came after the sector witnessed sustained selling in recent sessions, prompting fresh buying in several frontline technology companies.

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Large-Cap IT Stocks Lead The Rally

The rebound was led by heavyweight constituents of the index. Infosys share price climbed over 3.9%, making it the biggest gainer on the benchmark index during early trade. HCLTech share price rose over 3.4%, while TCS share price gained 2.6%. Tech Mahindra share price advanced 2.3%, and Wipro share price also traded higher, placing five IT companies among the top gainers on the Nifty.

Buying interest extended beyond large-cap companies. Coforge share price rose 3.8%, while Mphasis share price, Tata Technologies share price, Tata Elxsi share price and Persistent Systems share price gained between 2.7% and 3%. Several mid-cap technology stocks also featured among the leading gainers on the BSE Midcap index.

Recovery Follows Recent Correction

The rally followed four straight sessions of losses in the Nifty IT index, during which technology stocks came under pressure amid concerns over discretionary spending, global economic uncertainty and the evolving impact of artificial intelligence on traditional IT services.

Speaking to CNBC-TV18, Abhishek Pathak, Motilal Oswal Financial Services, said channel checks continued to indicate healthy demand for artificial intelligence implementation projects. However, he noted that IT companies could face valuation pressure if earnings growth and demand recovery do not strengthen.

Global Technology Shares Remain Weak

The gains in domestic IT stocks came despite a subdued overnight session for global technology shares.

In the US, the Philadelphia Semiconductor Index fell 6.3% as chipmakers broadly weakened on concerns about high valuations and ongoing investment in artificial intelligence infrastructure. Although Meta Platforms recorded a strong gain, broader technology stocks remained under pressure.

Asian semiconductor companies also traded lower. Shares of SK Hynix and Samsung Electronics declined as investors reduced exposure to chip stocks following a strong rally in recent months.

The sharp recovery in Infosys share price, TCS share price and other technology counters helped reverse part of the sector’s recent decline. Investors will continue to monitor upcoming corporate earnings, management commentary and global technology trends, which are expected to influence the direction of IT share price movements in the coming weeks.