By Sheetal Kumari | March 3, 2025

MC Markets | December 4

Why IT Stocks Are Rising in Volatile Market?  Here Are 3 Reasons

IT shares gained for the second straight session even as Sensex and Nifty swung sharply through the day. The Nifty IT index is up over 2% in two sessions.

IT Stocks Outperform 

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All 10 Nifty IT constituents traded higher. Coforge led with a 3% rise, followed by Persistent Systems, which gained nearly 2%.

All IT Stocks in Green

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TCS rose 1.58% after reports that OpenAI is in advanced talks with the firm to set up large-scale AI compute in India and co-develop agentic AI products.

TCS Hits 3-Month High

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A weaker rupee helps IT exporters, who earn most of their revenue in dollars, improving margins in rupee terms.

Reason 1

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Lower rates usually support tech spending, benefiting Indian IT companies that rely heavily on US clients.

Reason 2

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Motilal Oswal said the sector may be near an inflection point, with stronger growth expected in the next 6–9 months as enterprises scale up AI and cloud deployment.

Reason 3

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Infosys, Mphasis and Zensar were upgraded to “buy”. Wipro was moved to “neutral”. Brokerages expect growth to stabilise by FY28 as cloud spending normalises.

Upgrades Fuel Sentiment

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Moneycontrol advises users to check with certified experts before taking any investment decisions.

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