Infosys, TCS, Coforge, HCLTech shares climb as Nifty IT jumps nearly 4%; here’s what is driving the surge

Information technology (IT) stocks extended their gains in Tuesday’s trade, helping the Nifty IT index climb 3.81 per cent amid strong global technology cues.

Among the top gainers, shares of Infosys Ltd and Tata Consultancy Services Ltd (TCS) surged 5.22 per cent and 5.24 per cent, respectively. Coforge Ltd advanced 4.02 per cent, while HCL Technologies Ltd gained 3.76 per cent.

Other major IT counters also traded higher. Persistent Systems Ltd rose 2.68 per cent and Tech Mahindra Ltd added 2.18 per cent.

The upmove came as global market sentiment remained supportive. US equities extended their record-setting run overnight, with the S&P 500 and Nasdaq ending at fresh highs, driven by continued strength in technology stocks, particularly Nvidia.

Commenting on the sector’s outperformance, Ponmudi R, CEO of Enrich Money, said IT stocks have been benefiting from favourable global technology trends.

“IT has emerged as the notable outperformer, on the back of supportive global technology cues, continued AI-related optimism and favourable currency dynamics, helping provide a degree of resilience amid broader market weakness,” he said.

Despite the strength in IT shares, domestic benchmark indices remained under pressure.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said several macroeconomic concerns continue to weigh on Indian equities.

“The trend of sustained AI trade, new records for markets in US, South Korea and Taiwan, sustained FPI selling in India and India’s underperformance are continuing with no immediate signs of reversal,” he stated.

“To add to India’s problems, the energy shock has led to downward revision of India’s GDP growth and upward revision of inflation this financial year. And now we have the additional threat of the IMD’s latest projection of monsoon rains at 90 per cent of long-term average, which will have negative implications for growth and inflation,” he added.