IT stocks witnessed strong buying on Friday, with the sector gaining nearly 4% amid broad-based purchases. The Nifty IT index advanced 2.75% to move above the 31,000 level.
Tata Consultancy Services (), HCL Technologies and Tech Mahindra emerged among the top gainers on the Nifty 50.
TCS share price led the rally, rising 3.65%, while and Infosys gained 3.41% and 2.78%, respectively. Wipro shares also advanced nearly 2% during intraday trading on August 28.
What’s fuelling the rally in IT stocks today?
Indian IT stocks rallied in line with gains in global technology shares after chipmaker reported better-than-expected second-quarter earnings and delivered a strong sales outlook, boosting expectations that spending on AI infrastructure will remain robust.
Nvidia gained about 9% overnight after posting robust results on Thursday. The technology sector, along with the S&P 500 and Nasdaq Composite, posted their strongest single-day gains since August 4.
Nvidia delivered stronger-than-expected second-quarter results and provided an upbeat revenue forecast, bolstering expectations that demand for AI infrastructure and related investments will remain robust.
“Sentiment in technology and semiconductor stocks, however, was clearly lifted by Nvidia’s blowout quarterly results, which triggered a broad rally across AI-linked names in the U.S., helping the Nasdaq end about 1.5% higher,” said Ponmudi R, CEO at Enrich Money.
Nvidia Q2 results
For the second quarter ended July 26, 2026, Nvidia reported revenue of $96.2 billion, marking an 18% increase from the previous quarter and a 106% jump year-on-year.
Both GAAP and non-GAAP gross margins stood at 75% during the quarter. GAAP diluted earnings per share came in at $2.46, while non-GAAP diluted EPS was $2.22.
“AI has reached its inflexion point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue,” said Jensen Huang, founder and CEO of NVIDIA.
Huang further added, “And demand is accelerating. This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and startups, multiple frontier labs scaling in parallel, a thriving open-model ecosystem and physical AI coming online — with strong momentum across the U.S. and around the world. The AI infrastructure buildout is at full steam. Vera Rubin, now in full production, was built to power exactly this moment.”
Nvidia growth forecast for Q3
For the third quarter of fiscal 2027, Nvidia expects revenue to reach $108 billion, plus or minus 2%. The company said this outlook does not include any Data Centre computing revenue from China.
Both GAAP and non-GAAP gross margins are projected at 74%, with a 50-basis-point variation. GAAP operating expenses are expected to be around $9.2 billion, while non-GAAP operating expenses are estimated at approximately $9 billion.
For full fiscal 2027, Nvidia expects its GAAP and non-GAAP tax rates to range between 16% and 18%, excluding discrete items and any material changes to its tax environment.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.