The information technology stocks soared high in Wednesday’s trading session. The Nifty IT, which compiled IT stocks, was quoting at a level of 42,227.60 on the NSE, up 1.27%. Out of the five top gainers on the Nifty 50, the first four were tech stocks.
Among the components of the Nifty IT index, Wipro’s share price rose 2.4% to trade at Rs 305.75, the highest gainer on Nifty IT as well as Nifty 50. It was followed by Infosys’ share price which was up 2.43% at Rs 1,844.5, TCS’ share price up 2.23% at Rs 4,126, and Tech Mahindra’s share price up 2% at Rs 1,673.85.
Out of 10 components of the Nifty IT, 6 were trading in the green. Infosys and TCS were contributing the most to the Nifty IT’s gains. The Nifty IT was the only index that was trading in the green while all other sectoral indices were in the red.
Soft tariff actions by US President Donald Trump
Since US President Donald Trump took control of office for the first day he did not announce strong and harsh tariffs as expected earlier. However, he has ordered a review of US trade deals. Earlier, Trump threatened China, Mexico, and Canada to face tariff hikes on day one of his presidency. “Amidst heightened uncertainty triggered by President Trump’s orders and announcements, there is a near consensus that IT will be a safe sector in 2025,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Overnight gain in US markets boosted sentiments
The stock markets in the US saw strong gains after President Donald Trump’s actions surrounding international trade and tariffs were softer than expected. Reacting to this the Dow Jones Industrial Average rose 537.98 points, or 1.24% to end at 44,025.81 while the Nasdaq Composite advanced 0.64% to finish at 19,756.78. The tech stocks in the US like Amazon and Nvidia gained more than 2%, each.
Positive commentary by IT companies
Adding to this, the commentary by the Indian IT firms on improving the condition of discretionary spending and the macroeconomic situation in the US and European markets helped the IT stocks. TCS, Infosys, Wipro, Tech Mahindra, and LTIMindtree have reported their quarterly results so far. “Commentaries by the management of IT majors are positive and indications are that the sector will benefit from the robust US economy and increased tech spending by companies,” said Vijayakumar.
Also, Kishor Ostwal, Chief Managing Director at CNI Research said, “The IT stocks are seeing some positive traction after significant correction. Also, it is one of the favoured choices of FPIs buying in India.”