Tech stocks are rallying in trade today. The Nifty IT Index is up over 1% and key index heavyweights like Infosys rallied as much as 2% in early trade. Most other Index majors Wipro, HCL Tech, TCS and Tech Mahindra are up around 1% each. In fact, the Nifty IT Index is now up over 2% for the week and for the month the key sectoral Index has jumped close to 6%.
The list of information technology sector stocks on Financial Express.com indicate that many small and midcap technology stocks are up over 40% for the month.
Three reasons why tech stocks rallying today
There are many reasons why the tech stocks are rallying in early trade. Here is a look at the three key reasons that’s driving the stocks this morning.
Nvidia Earnings
AI-chip maker Nvidia beat quarterly sales expectations. Investors were encouraged about the fact that the dent of the tariff impact on current fiscal was not as bad as feared and the stock gained in after hours trading. As per the latest report on Reuters, Nvidia CEO Jensen Huang made impassioned remarks about US – China policy, saying that Nvidia was at risk of being cut off from China’s massive AI developer base and arguing that China’s chip industry was sophisticated and closing in on the United States’ dominance. He however praised US President Donald Trump’s recent move to rescind an AI diffusion rule impacting global flows of US AI chips.
US Stock Futures
US stock Futures are rallying on the back of Trump tariff block and strong Nvidia earnings. The Dow Futures have jumped 500 points while Nasdaq Futures jumped around 2%. The rally was primarily after the US trade court found the US President Donald Trump overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners. The court invalidated all of Trump’s orders on tariffs since January with immediate effect. This decision was rooted in the International Emergency Economic Powers Act (IEEPA).
Infosys, Coforge among Bernstein’s top IT picks
Infosys and Coforge are amongst the top gainers in the IT pack after these two stocks along with Persistent Systems feature prominently in Bernstein’s top pick in the IT sector. The key international brokerage house expects significant improvement in earnings and guidance for the tech companies in the current fiscal- FY26. The stable business outlook, growth-oriented deals, large orders and aggressive adoption of Artificial intelligence are the other key factors driving Bernstein’s bullish call.