Nifty IT Index Rallies Over 5% Intraday: Mphasis, HCLTech, LTTS Lead IT Stocks Recovery
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Nifty IT Stocks Today: The Nifty IT index touched an intraday high of 30,435, up 5.23%, before easing to a 3.66% gain, as Mphasis, HCL Tech and LTTS led a broad rally. Coforge reversed into losses after an early gain, while the sector awaits the Fed's rate decision on Wednesday.
Indian IT stocks made a strong comeback on Tuesday, with buying spreading across large and mid-cap technology companies. The Nifty IT index gained 3.66% to 29,981.05 in early trade, after touching an intraday high of 30,435.
Mphasis led the rally, rising as much as 7.24%, while HCL Technologies and L&T Technology Services gained nearly 7% each. Tech Mahindra, Infosys and TCS were also among the major gainers.
The domestic recovery came despite a weak session for US markets overnight. The Nasdaq Composite fell 0.56% and the S&P 500 declined 0.48% on Monday, with selling concentrated in AI and semiconductor stocks. However, gains in Microsoft and Google, along with a strong performance by Indian IT ADRs, provided a more supportive signal for the sector.
IT Stocks Today: Mphasis, HCLTech, LTTS Lead Gains
Mphasis touched Rs 2,461.10, up 7.24% from its previous close of Rs 2,295. HCL Technologies climbed to Rs 1,290, gaining 6.96% from its previous close of Rs 1,206.10, while L&T Technology Services rose 6.88% to Rs 4,568.90.
Tech Mahindra advanced 5.98% to Rs 1,633.20. Infosys gained 5.78% to Rs 1,097.70, while TCS rose 5.52% to Rs 2,322.40. Persistent Systems gained 4.41% to Rs 5,759 and Wipro rose 3.55% to Rs 173.35.
Oracle Financial Services Software advanced 2.86% to Rs 12,099, while Coforge gained 2.55% to Rs 1,893.60.
Why Are IT Stocks Rising Today?
Tuesday’s move follows a period of weakness in Indian IT stocks, with investors now returning to the sector as valuations have become more attractive following the recent correction.
The positive opening was also supported by overnight trends in Indian IT ADRs. Wipro ADRs rose 5.33% to $1.78, while Infosys ADRs gained 4.79% to $11.60. The ADR gains offered a positive lead for domestic technology stocks, even as US markets ended lower.
The weakness on Wall Street was concentrated in AI-linked stocks as investors continued to assess the pace of spending on artificial intelligence and the potential impact of AI on traditional technology businesses.
The broader technology sector, however, remained mixed. Microsoft and Google gained, indicating that selling pressure was not uniform across technology stocks.
The debate around the pace of AI development has also intensified. Anthropic CEO Dario Amodei has called for slower development of frontier AI models, while US President Donald Trump has pushed back against calls for tighter AI regulation and defended continued investment in AI infrastructure and data centres.
For Indian IT companies, the key issue remains whether rising AI adoption will create new technology spending opportunities or put pressure on traditional outsourcing and services revenue.
US Fed Rate Decision In Focus
The US Federal Reserve’s monetary policy decision will be another important trigger for global technology stocks this week.
The two-day FOMC meeting concludes on Wednesday, September 16, with the rate decision scheduled for 2 PM ET, or 11:30 PM IST, followed by the Fed Chair’s press conference.
Market expectations have shifted after recent inflation data. A Reuters poll published on September 14 showed a majority of economists expecting the Fed to raise rates on Wednesday, compared with the earlier expectation of no change.
For Indian IT companies, the Fed decision will be closely watched because US monetary policy can influence corporate spending, technology budgets and overall demand for IT services.
A hawkish policy signal could weigh on growth-sensitive technology stocks, while a softer stance could provide support to global technology and risk assets.
What Next For Indian IT Stocks?
The focus will now shift to whether the sector can sustain Tuesday’s recovery. Apart from the Fed decision, investors will track US technology spending, discretionary IT budgets, deal wins and currency movements. The industry’s response to the rapid adoption of generative AI will also remain an important factor for the longer-term outlook.
After the recent correction, valuations have become more favourable across parts of the Indian IT sector. However, the durability of the recovery will depend on global technology demand and the pace of spending by key overseas markets.
Tuesday’s sharp gains therefore mark a strong rebound for Indian IT stocks, but the next few sessions will determine whether the move develops into a broader sector recovery.
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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
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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