IT Stocks Rally Up To 5% As Nvidia Forecast Lifts US Tech Shares; Nifty IT Gains Over 3%
Add Preferred News Source
IT stocks rallied up to 5% in Friday’s trade, led by LTM, TCS, HCLTech and Coforge. The Nifty IT index gained 3.2% after Nvidia’s upbeat revenue forecast lifted US technology stocks. Read more
Information technology (IT) stocks rallied up to 5% in Friday’s intra-day trade on the National Stock Exchange (NSE), tracking a strong close in US markets after Nvidia gave an upbeat revenue forecast.
LTM led the gains, rising 5%, while Tata Consultancy Services (TCS), HCL Technologies and Coforge gained around 4% each. Infosys, Persistent Systems, Tech Mahindra (TechM) and Oracle Financial Services rose about 3% each.
At 10:26 am on Friday, the Nifty IT index was the top gainer among sectoral indices, rising 3.2%, compared with a 0.31% rise in the Nifty 50.
Why Are IT Stocks Rising Today?
US technology stocks ended higher on Thursday after Nvidia recovered from its post-results decline and rallied on a strong sales outlook.
The Dow Jones Industrial Average rose 0.20%, while the S&P 500 and NASDAQ gained 0.72% and 1.57%, respectively.
Market experts said the strong close in US markets helped improve sentiment towards Indian IT stocks. The Nifty IT index has gained 15% over the past two months, supported by reasonable valuations and attractive yields.
The recent gains have also come amid a possible shift in capital from concentrated artificial intelligence (AI) portfolios towards IT services stocks that had underperformed.
Analysts Flag Growth And Pricing Pressure
Despite the recent rally, market analysts continue to see some pressure on the sector.
A brokerage firm said AI-led revenue deflation, weaker labour-arbitrage benefits and pricing pressure in managed-services deals could weigh on IT growth in the near to medium term.
The brokerage also said the sector’s risk-reward has become more balanced after the recent gains. High US Federal Reserve rates, tighter IT budgets and intense competition could limit a broad-based re-rating of IT stocks.
IT Stocks Recover From July Lows
Indian IT companies had a mixed Q1FY27 earnings season. Some companies delivered strong results, while large-cap IT firms faced slower growth due to a high base, AI-led pricing pressure and weaker discretionary spending, according to market analysts.
The Nifty IT index has gained 22% from its July 2026 lows, although it remains negative on a year-to-date basis.
The recovery has been supported by improving sentiment, healthy deal pipelines and better demand commentary for the second half of FY27. Market experts said further gains could depend more on individual company performance and earnings delivery.
Also Read - NSE IPO: SEBI Close To Approving Draft Prospectus
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
Right Tools, Rich Insights
