IT Stocks Post Third Consecutive Day of Gains, Led by Movers in Coforge, Mphasis, and Infosys
IT Shares Extend Gains for Third Straight Session
Information technology shares continued their upward trend on Tuesday, rising by as much as 6 percent on strong buying interest and bottom fishing after recent sharp losses. The Nifty IT index, which serves as a benchmark for the sector, rose approximately 4 percent during the session and emerged as the top sectoral gainer on the Nifty.
This surge marks the third consecutive session of gains for the IT sector, with the index having gained more than 7 percent over the past three sessions. The sentiment was further bolstered by a stronger US dollar, as investors awaited the minutes of the US Federal Reserve's last policy meeting. Despite the recent recovery, the IT index still remains down by nearly 23 percent so far in 2026.
The sector's leading stocks drove the rally, with Coforge taking the top spot, rising more than 6 percent. Mphasis and Oracle Financial Services Software followed closely, gaining 5.24 percent and 4.91 percent, respectively. Other notable gainers included Tech Mahindra, Infosys, Tata Consultancy Services, and HCL Technologies, which rose between 2 percent and 4.5 percent.
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The rally is largely driven by expectations of improved earnings growth for IT companies, which derive a significant share of their revenue from the US market. India's $315-billion IT sector earns approximately 57 percent of its revenue from the US market.
The US dollar index, which measures the greenback against six major currencies, recovered to 99.076, up 0.1 percent, after snapping a five-session winning streak on Monday. The easing of concerns over escalation in global tensions contributed to this recovery.
| Company | Gain |
|---|---|
| Coforge | > 6% |
| Mphasis | 5.24% |
| Oracle Financial Services Software | 4.91% |
| Tech Mahindra | 2-4.5% |
| Infosys | 2-4.5% |
| Tata Consultancy Services | 2-4.5% |
| HCL Technologies | 2-4.5% |
The Nifty IT index experienced a sharp correction last week due to concerns that new artificial intelligence deployments by OpenAI could increase competition for Indian IT firms and impact revenues and market share.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors should expect improved earnings growth for IT companies, driving the rally in IT stocks.
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