IT Stocks Rebound After Friday's Sell-Off, Nifty IT Posts Nearly 2% Gain

Indian IT Stocks Rebound in Early Trade

Indian IT stocks saw a sharp rebound in early trade on Monday, recovering after last week's steep sell-off. The Nifty IT index rose 1.88 percent, emerging among the top sectoral gainers. At 09:45 am, the Sensex was up 490 points or 0.6 percent at 77,154, while the Nifty rose 157 points or 0.7 percent to 24,055, supported in part by gains in technology stocks.

Frontline IT Shares Lead the Recovery Frontline IT shares led the recovery, with Infosys, rising 1.79 percent, Wipro, gaining 2.03 percent, and Tech Mahindra advancing 2.16 percent. Infosys was among the top gainers on the Nifty, signalling a reversal from Friday's sharp decline of 7 percent. TCS shares rose 1.3 percent, while HCL Tech was up 0.9 percent.

The bounce comes after a broad-based sell-off in the previous session, when the Nifty IT index had fallen over 5 percent, weighed down by weak guidance from Infosys and concerns over global demand conditions. Despite the recovery, sentiment toward the sector remains cautious after recent earnings commentary flagged slower decision-making, rising competition, and modest growth visibility. Companies have highlighted slower client decision-making and a challenging demand environment, which had weighed on the sector in the previous session.

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Market Support Aids the Move Broader market support also aided the move. The market breadth was strong, with over 2,600 shares advancing against 742 declines; volatility declined, with India VIX down over 4 percent. Sectorally, the Nifty IT index was among the top performers, alongside gains in pharma and metals, indicating a risk-on tone in early trade. However, IT stocks continue to remain sensitive to global cues and earnings outlook, which had triggered the sharp correction in the previous session.