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    IT Stocks Jump Up To 8% As Nifty IT Index Extends Gains For Second Day

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    By Aparna Deb,News18

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    IT Stocks Jump Up To 8% As Nifty IT Index Extends Gains For Second Day

    Indian IT stocks rallied for the second consecutive day on Tuesday, with the Nifty IT index posting solid gains. The surge was broad-based, with large- and mid-cap IT companies advancing in tandem, signaling renewed optimism in the sector.
    Oracle Financial Services Software (OFSS) led the charge, rising 8% to Rs 9,092, while Persistent Systems gained 4.7% to Rs 5,372. Mphasis climbed 4.6% to Rs 2,984.80, Coforge advanced 3.6% to Rs 1,757.30, and LTIMindtree rose 3.5% to Rs 5,368.50.
    Among frontline names, Wipro gained 2.7% to Rs 255.8, HCLTech added 2.4% to Rs 1,461.9, and Tech Mahindra advanced 2.2% to Rs 1,531.4. Tata Consultancy Services (TCS) rose 1.9% to Rs 3,108, while Infosys was up 1.5% at Rs 1,527 on buyback-related buzz.
    Trade Optimism Boosts Sentiment
    A major catalyst for the rally came from improving India–US trade relations. US President Donald Trump said on X that talks to address trade barriers were progressing, expressing confidence in a successful resolution. Prime Minister Narendra Modi echoed similar optimism, stressing that negotiations would unlock the “limitless potential” of the partnership.
    With over 55–60% of Indian IT revenues coming from the US, this diplomatic alignment lifted hopes of easing tariff headwinds and stronger cross-border business momentum.
    Oracle Cloud Outlook Lifts OFSS
    Global cues also provided support. Shares of Oracle Corp hit record highs after the company reported a 55% jump in cloud revenue to $3.3 billion, driven by demand for AI infrastructure.
    The upbeat outlook for Oracle’s cloud business spilled over to OFSS, its Indian subsidiary, lifting investor sentiment across the IT pack. The commentary also reinforced confidence in outsourcing and cloud integration demand, benefiting Indian IT exporters.
    Infosys Buyback Consideration
    Domestic triggers added to the momentum. Infosys announced that its board would consider a buyback proposal on September 11, which, if approved, would be its fifth such move.
    Analysts see this as a sign of management’s confidence in cash flows and long-term growth prospects. Buybacks also tend to enhance shareholder value by improving earnings per share.
    Rupee Depreciation Aids Exporters
    The rupee’s recent slide past 88 against the US dollar provided another tailwind for IT firms. While currency weakness raises macro concerns, it directly boosts profitability for exporters, as they earn a majority of revenues in dollars but incur costs in rupees.
    This natural hedge reassured investors that Indian IT companies could sustain margins despite uncertain client spending.
    Global Tech Linkages Remain Key
    Indian IT stocks also continue to track broader global tech trends, with Nasdaq movements and US enterprise technology budgets serving as leading indicators. Demand in key verticals like BFSI, telecom, and retail remains closely tied to US economic signals.

    With multiple triggers — trade optimism, global cloud momentum, Infosys’ buyback plan, and a weaker rupee — Indian IT stocks are back in the spotlight. While the rally signals improving sentiment, sustainability will depend on the resolution of trade negotiations, clarity on US client budgets, and deal pipeline visibility in the quarters ahead.

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