Nifty IT extends gains to over 3% as rebound strengthens; Infosys, TCS, HCL Tech lead, dominate Nifty gainers

Nifty IT

• Nifty IT index jumps 3.2 percent, leading sectoral gains
• Infosys, HCL Tech, TCS among top Nifty gainers
• Midcap IT stocks surge, Oracle Financial up 4.5 percent

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IT stocks extended their recovery on Wednesday morning, with the Nifty IT index rising over 3 percent. Gains strengthened across frontline and midcap names, with IT stocks climbing up among Nifty top gainers, and the sectoral index firmly among the top performers on the benchmarks.

As of 10:03 am, the Sensex had partly eased off and was up 270 points or 0.35 percent at 76,341, while the Nifty was up 95 points at 23,670. Market breadth remained strong, with 2,755 shares advancing against 632 declines.

But, the Nifty IT index extended gains to 3.2 percent, solidifying its morning rebound and emerging as the top sectoral gainer.

All major IT stocks traded sharply higher, with Infosys jumping over 3.3 percent, leading the Nifty gainers. HCL Technologies and TCS shares rose around 3.1-3.2 percent each. Tech Mahindra gained nearly 2.8 percent and Wipro advanced over 2.6 percent, placing five IT stocks as the top gainers on the benchmark Nifty 50 index.

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The rally was even more pronounced in midcap IT stocks. Oracle Financial Services Software surged about 4.5 percent, while Persistent Systems and Coforge gained over 4 percent each. Mphasis, LTIMindtree, and other IT names rose between 3-3.5 percent, indicating broad-based buying interest across the sector.

The sharp rebound comes a day after sharp selling had dragged IT stocks lower, with the rebound now gaining momentum as investors step in at lower levels. The recovery appears to be largely driven by short covering and bargain buying after the recent correction, with investors returning to beaten-down largecap IT stocks.

The strength in IT also comes amid a broader market recovery, with multiple sectors trading in the green, although gains in banking stocks remained subdued. The sector also found support from improving global cues, with US markets closing higher overnight and risk sentiment stabilising, even as geopolitical tensions persist.

Market volatility continued to ease, with the India VIX declining nearly 5 percent. However, analysts continue to flag that global demand uncertainty and persistent FII selling could keep IT stocks volatile.

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