Nifty IT Index Up 1% on Renewed Buying Interest

The Nifty IT index rose about 1% today, with some of the biggest names in the Indian technology space pulling the sector higher. Stocks like TCS, Infosys, Wipro, and HCL Technologies all traded in the green, adding to Monday’s broader market gains.

 

What’s Driving the Move

Investor sentiment toward IT stocks has improved in recent sessions. Expectations of easing inflation, both in India and overseas, are giving markets a lift, and there’s been renewed interest in sectors that can deliver stable earnings despite global uncertainty. The IT sector fits that bill — it benefits from ongoing demand for outsourcing, cloud services, and digital transformation projects worldwide.

 

The move also aligns with recent institutional buying trends. Both domestic and some foreign investors have been adding positions in large-cap tech stocks, which many see as attractively valued after a period of underperformance.

 

The Bigger Picture

While Indian IT companies have faced slower growth over the past couple of years due to cautious client spending abroad, they’ve still maintained solid balance sheets, high cash flows, and steady returns to shareholders. TCS and Infosys, for instance, have recently announced new deals, reinforcing the idea that demand is stabilising, even if not booming.

 

On the technical side, analysts say the Nifty IT index could see further gains if it breaks past near-term resistance levels. Much will depend on upcoming corporate earnings and global tech spending trends.

 

What to Watch

India’s inflation data is due soon, which could influence overall market momentum. Global cues — especially from the US tech sector — will also matter for sentiment here. For now, IT remains a sector that many traders view as a relatively safe bet with room for steady growth.

 

Sources: Economic Times, Moneycontrol, Business Standard, NDTV Profit