TechM, Wipro, Infosys, other IT shares rise up to 3%, snap 7-day losing streak; analyst warns 'broader downtrend may persist'

Tech Mahindra, Wipro, Infosys, other IT shares rise up to 3%, snap 7-day losing streak

Shares of IT companies including Tech Mahindra, Wipro and Infosys gained up to 3 percent on Monday, snapping a seven-day losing streak even as broader market sentiment remained weak.

The Nifty IT index rose 1.6 percent, emerging as one of the top sectoral gainers in trade today, as investors bought into beaten-down technology stocks following a sharp correction. Analysts, however, termed the gains as a technical rebound from oversold levels rather than a sign of trend reversal.

Nine of the ten constituents in the Nifty IT index were in the green, with Persistent Systems being the only exception, declining over 1 percent.

"The Nifty IT index saw a 7.5 percent decline last week and is now approaching the 37,000-36,900 range. Today’s gains should be viewed as a short-term bounce rather than a shift in market direction," said Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan.

He cautioned that the broader downtrend in IT stocks is likely to persist, advising that minor pullbacks towards the 37,930-38,000 resistance zone could present selling opportunities.

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Among individual stocks, Tech Mahindra rose 2.93 percent to an intraday high of Rs 1,531.5 on the NSE, bouncing back after seven consecutive sessions of decline. Wipro gained 3.13 percent to Rs 286.35, while Infosys climbed 2.42 percent to Rs 1,728.60.

IT Index heavyweight Tata Consultancy Services (TCS) also saw gains, rising over 1 percent to Rs 3,523.25.

The IT sector has been under pressure in recent weeks, mirroring the weakness in US technology stocks. A sharp sell-off in AI-driven stocks on the Nasdaq, coupled with concerns over a slowing US economy and recent tariff announcements weighed on the investor sentiment, contributing to the decline in IT shares.

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