Indian IT Stocks Rise Up to 2% After Wall Street Tech Rally

Indian information technology stocks advanced in morning trade on February 19 after a rally in U.S. technology shares eased concerns around artificial intelligence-led disruption, according to exchange data.

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The Nifty IT index jumped more than 1.5% to 33,167.6 during the session. The gains followed overnight strength on Wall Street, where technology stocks rebounded after recent losses linked to AI-related competition concerns.

Nifty IT Index and Key Gainers

Shares of Coforge rose more than 2% in early trade. Heavyweights including Infosys, Tata Consultancy Services and HCL Technologies gained nearly 2% each, according to NSE data.

Wipro and Tech Mahindra advanced around 1% each. LTIMindtree and Oracle Financial Services Software traded with marginal gains.

Bucking the trend, Persistent Systems declined more than 2%, while Mphasis traded marginally lower.

Global Tech Rally Supports Sentiment

The rally in domestic IT stocks followed gains in U.S. technology shares. Reuters reported that Nvidia rose 1.6% after signing a multi-year deal to supply artificial intelligence chips to Meta Platforms, whose shares gained 0.6%.
Other U.S. technology stocks also advanced. Sandisk, Western Digital and Seagate Technology Holdings rose between 1.7% and 4.4%, driven by demand linked to AI-related storage needs. Amazon gained 1.8%, while Microsoft rose 0.7%.

The S&P Software & Services index rose 1.26%, while the broader S&P 500 gained 0.56% and the Nasdaq Composite advanced 0.78%, Reuters reported.

TCS-OpenAI Partnership

Separately, TCS announced a multi-dimensional strategic partnership with OpenAI. The collaboration will focus on AI-led innovation across Tata Group companies and global enterprises, according to a company statement.
Under the agreement, several thousand Tata Group employees will gain access to Enterprise ChatGPT. TCS will also use OpenAI’s Codex to enhance software engineering outcomes. In addition, TCS’s HyperVault unit and OpenAI agreed to a multi-year partnership to develop AI infrastructure in India, beginning with 100MW capacity and an option to scale to 1 GW.

Recent Correction and Valuation Commentary

The gains follow a recent selloff in IT stocks after Anthropic launched new AI tools, raising concerns about increased competition. The Nifty IT index had declined 8.2% last week, marking its worst weekly performance in 11 months, according to the report.

Nomura said valuations of Indian IT stocks have entered the “value” zone after the correction, noting that earlier declines were driven by concerns around AI-led disruption and margin pressures. JPMorgan, in an earlier note, stated that artificial intelligence is expected to create new areas of work rather than eliminate opportunities for IT services firms.

Indian IT stocks gained up to 2% on February 19, tracking a rebound in U.S. technology shares and supported by company-specific developments, including TCS’s partnership with OpenAI.