The Nifty IT index is higher on June 27, tracking Wall Street peers on rising hopes of a US Fed rate cut sooner than previously anticipated, and Nasdaq 100's first record close since February earlier this week, with easing geopolitical tensions supporting bets on US tech and AI-driven themes.
US stocks are nearing record highs after the ceasefire between Iran and Israel was seen as easing political risks, along with reports suggesting the possibility of US President considering an early replacement for the Federal Reserve chief Jerome Powell with somebody more inclined towards a rate cut. President Trump said he has candidates in mind to replace Powell as the Chair of the central bank.
Trump has attacked Powell multiple times after the latter highlighted the possibility of rise in inflation after Trump's tariffs take effect. "We should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make. If things later change to the negative, increase the Rate," Trump had said.
A rate cut by the US Fed would likely increase the discretionary spending limit of Americans, and Indian IT companies that derive revenue from the US economy may be positively impacted by that.
"IT stocks are witnessing strong buying interest, supported by easing geopolitical tensions and continued strength in global technology indices, particularly in the U.S. markets," said Ajit Mishra, SVP of Research at Religare Broking.
Coforge shares were the top gainer on the index, jumping over 3 percent to trade at Rs 1,948 apiece, followed by Mphasis whose shares gained 2.5 percent to trade at Rs 2,872 apiece. Persistent Systems and HCL Tech shares gained nearly 1 percent, while Infosys, Tata Consultancy Services (TCS), Tech Mahindra (TechM), LTI Mindtree and Wipro shares were trading in the green with marginal gains.
Also Read: Our LIVE blog on stock market updates.
The Nasdaq 100 Index has gained 30% since its April lows, outperforming the S&P 500 Index.
Notably, the rise in the IT stocks comes after a period of severe volatility amid global uncertainties and tariff flipflops. "In the IT space, the recovery seems more technical and valuation-led. After a steep correction of over 30% between December 2024 and March 2025, the Nifty IT index has retraced approximately 27% from its lows, reflecting some degree of bottom-fishing by investors. Many IT stocks remain well below their all-time highs, and with global rate-cut expectations supporting sentiment, there is renewed interest in large-cap names offering consistent cash flows and global exposure," said Bhavika Joshi, Business Head, INVasset PMS.
(With inputs from Reuters)
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
