Indian IT Stocks Surge Amid Optimism Over U.S.-China Trade Talks

Indian IT stocks had a strong day on the markets, with companies like Coforge and Mphasis seeing their shares rise by as much as 4%. What's behind the rally? A renewed wave of optimism surrounding U.S.-China trade negotiations has eased some fears of a global economic slowdown.

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Market Snapshot

Leading the charge was the Nifty IT index, up more than 1.5% to hit 38,546 points, its fifth day in a row of gains. The BSE IT index also had a solid jump, rising by 830 points to 38,042. Confidence in the sector is running high.

Big-name IT stocks showed strong performance across the board. Coforge climbed 3.17% to ₹1,854 per share, and Persistent Systems wasn't far behind with a 3.62% bump. Mphasis gained 2.59%, and other IT heavyweights, including Tech Mahindra, Infosys, HCL Technologies, and TCS, also posted gains of over 1%.

What's Fuelling the Rise?

Positive Signals from U.S.-China Trade Talks

The latest round of trade talks between the U.S. and China, held in London, sparked a sense of relief among global investors. U.S. President Donald Trump said things were going "well" with China, though he admitted it's "not easy" and shared that he's been getting "only good reports" from his team.

For Indian IT firms that rely heavily on U.S. business, the easing of global trade tensions is a welcome sign. A calmer trade environment could lead to greater stability and increased growth opportunities.

Broker Confidence and Analyst Upgrades

Market sentiment got another boost thanks to positive calls from top brokerages. JP Morgan reaffirmed its 'overweight' rating on Coforge, assigning it a price target of ₹2,080, that's which is approximately 16% higher than its last close.

Tech Mahindra also saw a 3% bump, ending the day at ₹1,626.50. Its market cap now stands at ₹3.77 lakh crore on the BSE, highlighting investor faith in the company's trajectory.

Sector-Wide Momentum

The entire IT space benefited from the upbeat mood. Aside from the major players, mid-tier firms like Sasken, Cyient, Zensar Technologies, Sonata Software, and Mastek were also among the top gainers.

This wave of optimism is being supported not just by global cues but also by solid earnings and steady market trends that continue to attract investor attention.

Final Thoughts

The rally in Indian IT stocks highlights the sector's strength in the face of global uncertainty. With trade tensions easing and positive analyst outlooks in place, investors are optimistic about what's ahead for Indian tech firms.

Still, all eyes will be on how the U.S.-China trade talks unfold and on upcoming earnings reports to see if this bullish run can maintain momentum.