Indian IT Stocks Surge Up to 4% Amid Global Tech Rally Following Anthropic Comments

Indian IT Stocks Rally on Global Technology Rebound

Key Figures:

• Nifty IT index: 2.8% gain
• Sensex: 0.5% gain
• Nifty 50: 0.5% gain
• Mphasis: 3.1% gain
• Infosys: 2.8% gain
• LTIMindtree: 3.1% gain
• HCL Technologies: 3.4% gain
• Tata Consultancy Services (TCS): 2.6% gain

On Wednesday, the Nifty IT index rallied, emerging as the top-performing sector on the NSE, after a severe crash on Tuesday due to concerns over artificial intelligence (AI) disruption. The index constituents, including Mphasis, Infosys, LTIMindtree, HCL Technologies, and Tata Consultancy Services (TCS), rose by 2-4%.

The rally in Indian IT stocks was fueled by an overnight rebound in software and technology stocks on Wall Street, led by the Nasdaq Composite index, which ended 236.41 points, or 1.05%, higher at 22,863.68 on Tuesday.

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US Tech Stocks Rally The tech stocks, which had been under pressure since Anthropic launched new AI tools earlier this month, saw a relief rally after the company announced partnerships with several SaaS companies, including Salesforce. The move signaled that Anthropic plans to work alongside software providers rather than disrupt or replace them, easing concerns that had triggered the recent sell-off in these stocks.

Key Gainers

• Salesforce: 4.1% gain
• Nvidia: 0.68% gain
• Advanced Micro Devices (AMD): 8.8% gain
• Apple: 2.24% gain
• Microsoft: 1.18% gain
• Intel: 5.71% gain
• Amazon: 1.60% gain
• Meta: 0.3% gain
• Keysight Technologies: 23.1% gain

Outlook for Indian IT Stocks JM Financial believes that Indian IT companies have always benefited from domestic fund flows, which are absent in case of global IT services. The brokerage firm noted that the depreciation in the Indian rupee helps Indian IT companies manage margins, unlike global IT giants. JM Financial remains selective and prefers Infosys among the top six companies, Mphasis among mid-tier IT firms, and Sagility among BPO names.