Infosys, Wipro, TCS, other IT shares rise up to 9% on US-China deal on tariffs

Shares of Indian information technology companies rallied sharply on Monday, with the Nifty IT index logging its biggest single-day jump in five years, after the United States and China agreed to temporarily slash  tariffs in a deal aimed at easing trade tensions.

The Nifty IT index surged 6.7 percent, as all 10 constituents ended the session in the green. The rally was led by Oracle Financial Services Software, Infosys and Coforge, which rose up to 9 percent.

The move by Washington and Beijing to slash reciprocal tariffs helped calm fears of a global economic slowdown, fuelling optimism across technology counters which derive a significant portion of their revenue from overseas clients, particularly in the US.

In the latest agreement, the US said it would reduce the additional tariffs imposed on Chinese imports in April to 30 percent from 145 percent, while China agreed to cut duties on US goods to 10 percent from 125 percent. The measures will be in effect for 90 days, both countries confirmed.