Indian IT stocks witnessed strong buying interest during Monday’s trading session, with sector heavyweights such as Wipro, Infosys, Tata Consultancy Services (TCS), and others advancing sharply as investors turned optimistic on the sector’s near-term prospects.
The rally came amid an overall positive market environment and improving sentiment towards global technology companies. The Nifty IT index surged nearly 3%, with every constituent trading in positive territory.
emerged as the top performer among Nifty IT stocks, gaining around 4% during intraday trade. , and also advanced more than 3.5% each, while Persistent Systems, Mphasis and HCL Technologies rose over 2%. L&T Technology Services and TCS were also trading firmly in the green.
The broad-based rally reflected renewed investor confidence in the sector after months of volatility driven by global economic concerns, currency fluctuations and uncertainty surrounding artificial intelligence-led disruption.
Why are IT stocks rising?
Market experts believe the latest upmove in has been driven by a combination of improving earnings visibility, attractive valuations following the market correction and continued confidence in the sector’s AI-led growth opportunities.
“The double digit earnings growth in financials, automobiles and metals is impressive,” said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments.
“Trends indicate that FY27 will be good for defence, capital goods, renewable energy, financials and pharmaceuticals. Growth sectors like digital platform companies are getting accumulated on declines,” he added.
Over the past few weeks, IT stocks have attracted significant value buying as investors reassessed the sector’s outlook. Several factors have supported sentiment, including the weakening of the Indian rupee, easing concerns around the disruptive impact of artificial intelligence and commentary from companies during the March quarter earnings season.
Major IT companies, including Infosys, TCS, HCL Technologies and Wipro, reiterated during their Q4 results that they remain committed to expanding their AI capabilities and investing in infrastructure, platforms and employee upskilling initiatives.
The correction in IT stocks over recent months also made valuations more attractive, encouraging investors to accumulate quality names in the sector despite broader concerns around geopolitical tensions and currency volatility.
A weaker rupee has been another key tailwind for the industry. During the last one month, the Indian currency weakened around 1.5% against the US dollar amid heightened geopolitical uncertainty and risk aversion among global investors. Since a significant portion of revenue for Indian IT companies is denominated in dollars, rupee depreciation generally benefits earnings.
Investor sentiment has also been supported by the sector’s strong exposure to the US market. Industry estimates suggest that the United States accounts for nearly 70% of India’s total IT and software services export revenue, making any improvement in US technology spending a significant positive for Indian IT companies.
Wipro’s partnership expansion adds momentum to the rally
One of the major triggers for Monday’s rally was Wipro’s strong stock performance following the .
The collaboration will focus on deploying agentic AI workflows across key enterprise functions, including information technology, human resources, procurement and cybersecurity.
The development received a positive response from investors both in India and overseas. Wipro’s American Depositary Receipts (ADRs) surged 18.54% overnight to close at $2.43 on the New York Stock Exchange.
The positive momentum spilled over to other Indian technology companies as well. Infosys ADRs gained 2.5% to $12.70 on the NYSE, further strengthening sentiment towards the broader IT sector.
With AI investments gathering pace, valuations becoming more reasonable after the correction, and currency trends remaining supportive, investors appear to be betting that the Indian IT sector could be poised for a stronger growth phase in the coming quarters.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.