Nifty IT Index Jumps 3% As Global Chip Selloff Lifts Focus On Indian Software Stocks

The Nifty IT index surged around 3% on July 28, outperforming Asian technology markets that remained under pressure from a sharp selloff in global semiconductor stocks. Indian IT companies attracted buying interest as investors viewed the sector as relatively insulated from concerns surrounding heavy spending on artificial intelligence infrastructure. The move also came ahead of the U.S. Federal Reserve’s policy decision, with the sector’s share price performance remaining in focus.

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The sectoral index has gained about 6% over the past two trading sessions after Jefferies upgraded its view on the sector to “Neutral” from “Underweight.” The improvement in sentiment coincided with renewed interest in large-cap and mid-cap software companies.

Coforge Leads Gains After Quarterly Results

Coforge emerged as the top performer on the Nifty IT index after reporting its June quarter earnings. By 10:35 a.m., the Coforge share price had climbed about 9%, while Mphasis share price gained around 4.4%.

According to the company’s exchange filing, Coforge reported U.S. dollar revenue of $592.2 million during the June quarter, up from $489.1 million in the March quarter. Revenue in rupee terms rose 24.2% quarter-on-quarter to ₹5,527.7 crore.

Net profit, however, declined 15.3% sequentially to ₹518.6 crore from ₹612.3 crore. The company attributed the decline primarily to one-time expenses linked to the Encora Holdings acquisition, including ₹61.3 crore in acquisition and integration costs, ₹5 crore in legal expenses and ₹10.8 crore in provisions for customer receivables. These were partly offset by foreign exchange gains of ₹22.1 crore, resulting in a net exceptional impact of ₹55 crore.

Large-Cap IT Stocks Extend Rally

Buying was broad-based across the sector. TCS share price rose about 4.4%, while HCLTech share price, Tech Mahindra share price and Infosys share price gained 3.2%, 2.8% and 2.7%, respectively.

The advance came despite weakness across global technology markets. Semiconductor stocks in Asia and the U.S. remained under pressure as investors reassessed returns from substantial investments in artificial intelligence infrastructure.

Global Technology Stocks Face Pressure

Asian equity markets declined after technology stocks extended losses seen on Wall Street. South Korea’s Kospi Index recorded one of the sharpest declines as semiconductor companies came under heavy selling pressure. Shares of SK Hynix and Samsung Electronics each fell more than 11%, while broader technology benchmarks in Japan and Taiwan also weakened.

Separately, investors continued to monitor the upcoming U.S. Federal Reserve policy decision. According to Nachiketa Sawrikar, Fund Manager at Artha Bharat Global Multiplier Fund, while a rate increase is not expected, the central bank is likely to retain the option of tighter monetary policy if inflation remains elevated.

Indian IT companies derive a significant portion of their revenue from the U.S. market, making the Federal Reserve’s policy outlook an important factor for the sector. Even as global technology stocks remained under pressure, the strong performance of leading software companies helped lift the Nifty IT index and kept the respective share price of major IT firms in focus.