Nifty IT Jumps 4% As Infosys, TCS And Tech Mahindra Extend Rally

IT shares led gains on Dalal Street on Tuesday, with the Nifty IT index climbing over 4% to 29,566 during trade on the NSE.

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The advance marked the third consecutive session of gains for the sectoral index, which has risen around 8% during the period. The index had gained nearly 2.5% on Monday after rising 1.3% in the previous session last week. All constituents of the Nifty IT index traded higher during the session.

Coforge emerged as the top gainer in the pack with a rise of nearly 5%. Infosys and LTIMindtree gained more than 4%, while Tech Mahindra, Persistent Systems, Oracle Financial Services Software, HCL Technologies and Tata Consultancy Services advanced over 3%. Wipro also traded in positive territory with gains of around 2%.

Rupee Weakness Supports IT Stocks

The recent weakness in the rupee against the U.S. dollar has supported sentiment in export-oriented technology companies.

Most large Indian IT firms derive a substantial share of revenue from overseas markets, particularly the U.S. A weaker rupee generally improves revenue realisation in rupee terms for companies billing clients in dollars.

The rupee recently fell to record low levels against the U.S. dollar amid elevated crude oil prices, foreign fund outflows and global market uncertainty.

Value buying after the sharp correction seen earlier this year also contributed to the rebound in IT shares.

Nifty IT Index One Of The Worst Performing Sectoral Indices In 2026 Even After Recent Recovery

Sector Saw Severe Correction In Its Performance Recently

The performance of technology companies had seen a lot of selling pressure recently owing to the worries regarding the impact of artificial intelligence on their business operations.

The Nifty IT index has declined more than 22% on a year-to-date basis despite the ongoing three-day rally. The March quarter earnings season also remained weak for several IT companies.

According to Kotak Institutional Equities, most large IT firms reported lower-than-expected growth, subdued deal momentum and cautious guidance for FY27.

TCS reported sequential revenue growth of 1.2% during the quarter, while Tech Mahindra posted 0.6% growth. Infosys, HCL Technologies and Wipro reported sequential declines in revenue.

The brokerage also noted that mid-tier IT firms outperformed larger peers during the quarter, recording growth between 1.2% and 3.4%.

Guidance And AI Concerns Remain Key Factors

Brokerages have highlighted concerns around pricing pressure, slower technology spending and the impact of generative artificial intelligence on traditional IT services demand.

Launches of AI products recently by firms like OpenAI and Anthropic have raised worries about disruptions due to automation within the tech service sector.

While the latest stock gains may be encouraging, investor sentiment has been concentrated on the growth of the bottom line and spending patterns in foreign nations.