The Nifty IT index surged approximately 3% to 29,535.20 on July 28, 2026, following a strong performance of US-listed technology stocks. This increase comes as investor sentiment toward the technology sector improves, driven by gains in major IT firms such as TCS, Infosys, and HCLTech. The index's rise marks a continuation of positive momentum, having ended the previous session nearly 1% higher.
Key Details
The rally in Indian IT stocks was spurred by a robust overnight performance in US software companies, with Accenture and EPAM Systems both gaining 4.8%. Other notable performers included Gartner, which rose 5%, and Cognizant, which added 3.5%. The Philadelphia Semiconductor Index (SOX) faced a correction, contrasting with the strong gains in application software and IT services, suggesting a shift in investor focus towards software names.
Background
In India, all constituents of the Nifty IT index were in the green. Coforge led the gains with a rise of around 7%, followed by Mphasis at approximately 5%. Other firms like TCS and Infosys also saw increases of over 2.5%. Analysts attribute this rally to a combination of easing geopolitical tensions in the Middle East and positive brokerage commentary regarding upcoming technology earnings in the US, which has bolstered investor confidence.
The rise in the Nifty IT index is likely to positively influence investor sentiment in the technology sector, potentially leading to further gains in IT stocks. Additionally, easing oil prices, which had surged above $100 a barrel last week, could alleviate some inflationary pressures, benefiting broader market conditions. Watch for upcoming technology earnings reports in the US, which may provide further direction for Indian IT stocks.