India’s tech sector is in the limelight. IT stocks are roaring ahead powering the rally in the markets significantly. The Sensex touched 80,000 mark for the first time since January and is currently hovering close to it. The Nifty is cruising comfortably above 24,200, both benchmark extending their winning streak for the seventh straight session.
What is really turning heads, though, is the sharp surge in the Nifty IT index, which jumped over 3% in early trade. All ten stocks in the index were in the green, with some like HC Tech clocking gains as high as 6%.
Here’s a closer look at what’s fuelling this tech-driven rally.
Top IT gainers of the day
HCL Technologies stole the spotlight, surging over 6% after posting strong Q4 earnings with an 8% YoY rise in profit. Tech Mahindra followed closely, rising nearly 5%. Coforge gained around 4.5%, while MphasiS and LTIMindtree were up by about 3.5%.
Other big players like Infosys, Persistent Systems, OFSS, TCS, and Wipro were all trading higher, with gains between 2% and 3%.
So, what’s behind this sudden surge? Here are 3 key drivers:
Q4 earnings spark: Strong performance from HCL Tech lifts the pack
The rally got a big push after HCL Technologies reported a better-than-expected Q4 performance, a 8% rise in net profit. This strong showing is helping offset worries triggered by the cautious guidance issued earlier by peers like Infosys and TCS. The fact that HCL Tech added that the company has closed bookings worth $3 billion in Q4 is also helping allay fears about demand going forward.
Global Cues: Tech optimism from Wall Street
Indian IT stocks are tracking the upbeat mood in global tech. Overnight, US tech stocks rallied on the back of improving investor confidence, especially after President Donald Trump hinted at a more moderate approach to Chinese tariffs. This indicates a good sign for Indian IT firms with major exposure to the US and other global markets.
Return of FIIs: Foreign investors are back in the game
Foreign Institutional Investors (FIIs), who had been pulling back from Indian equities in recent months, seem to be making a comeback. The renewed interest is visible in IT stocks, which had been under pressure due to deal delays and muted earnings guidance. With improving risk sentiment globally, FIIs are once again seeing value in India’s export-driven tech sector.