Nifty IT Rallies 3% As Infosys, TCS Lead Gains Amid Global AI-Led Tech Surge

Information technology stocks emerged as the strongest performers in an otherwise subdued market on Monday, with the Nifty IT index advancing over 3% as investors tracked gains in global technology shares linked to artificial intelligence (AI) spending.

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The rally was led by large-cap companies, with Infosys climbing more than 4% to ₹1,208 and becoming the top gainer on the Nifty 50 index. Tata Consultancy Services (TCS) gained 2%, while Tech Mahindra rose 3.3%. HCL Technologies added 1.7% and Wipro advanced 1.2%. Several frontline IT stocks featured among the top gainers on the benchmark index during the session.

Gains Extend Across Mid-Cap IT Stocks

The buying interest was not limited to large-cap names. Mid-cap technology companies also witnessed strong demand, helping the sector outperform the broader market.

Persistent Systems jumped nearly 5% and emerged as the top gainer on the Nifty Midcap 100 index. Mphasis rose 3.5%, Coforge gained 3.4%, while KPIT Technologies advanced more than 2%. Four IT companies figured among the five biggest gainers on the mid-cap benchmark.

The sharp move higher in technology stocks contrasted with weakness across several other sectors. At the time of reporting, the Nifty 50 was trading only marginally higher, while the Nifty Midcap 100 index was lower by around 0.7%. Sectoral indices representing automobiles, FMCG, private banks, real estate and consumer durables remained under pressure.

Global Technology Rally Supports Sentiment

The strength in Indian IT shares reflected positive cues from overseas markets, where technology stocks continued to benefit from expectations of rising investments in artificial intelligence infrastructure, advanced computing systems, semiconductors and data centres.

Asian technology shares recorded strong gains during the session. Japan’s Nikkei index extended its recent advance after reaching record levels last week, while South Korean technology stocks moved higher on expectations of deeper participation in the expanding AI ecosystem.

Samsung Electronics surged nearly 10%, while LG Electronics climbed about 28%, adding to optimism across technology-focused markets.

Focus Remains on AI Developments

Investor attention also remained on developments in the artificial intelligence sector globally. Market participants were closely monitoring announcements expected from Nvidia Chief Executive Jensen Huang during his keynote address at Computex in Taiwan, one of the world’s largest technology exhibitions.

The positive global backdrop helped Indian IT stocks decouple from the broader market trend, making the Nifty IT index the best-performing sectoral gauge of the day. This move came at a time when investors were still interested in tech stocks, considering the future expenditure on AI infrastructure.