On February 1, 2026, at 12:55 PM IST, the Nifty IT Index traded higher, bucking broader market weakness. Gains were driven by investor optimism over Budget 2026 announcements, including a tax holiday until 2047 for foreign data centres, streamlined safe harbour margins, and enhanced thresholds for IT services.
Key Highlights:
Index performance: At 12:55 PM IST, the Nifty IT Index was up, reflecting strong buying interest in technology stocks. Heavyweights such as Infosys, TCS, and Wipro led the rally, supported by positive sentiment around Budget reforms.
Budget boost for IT: Finance Minister Nirmala Sitharaman’s Budget 2026 unveiled a tax holiday until 2047 for foreign companies setting up data centres in India, a move expected to attract global investment and strengthen India’s digital infrastructure.
Safe harbour reforms: The Budget introduced a common safe harbour margin of 15.5% for all IT services, alongside an automatic rule-driven approval model, simplifying compliance and reducing litigation risks.
Threshold expansion: The safe harbour eligibility threshold was raised to ₹2,000 crore from ₹300 crore, widening access for larger IT firms and boosting confidence in the sector.
Investor sentiment: Analysts noted that while broader indices like the Sensex and Nifty 50 slipped earlier in the day, IT stocks stood out as beneficiaries of structural reforms, positioning the sector for long-term growth.
Sources: Reuters Market Update, NSE India Market Watch, Economic Times Budget Live, Business Standard