Indian IT stocks rally as Nifty IT climbs over 3%
Indian IT stocks got a solid boost on Monday, with the Nifty IT index climbing over 3% in early trading.
Top companies like Infosys, TCS, and Tech Mahindra saw their shares rise between 2% and 4%.
Midsize players such as Persistent Systems and LTIMindtree also joined the rally.
US tech optimism boosts Indian IT
The main driver was optimism about more tech spending in the US the biggest market for Indian IT exports.
Hopes of a US Fed rate cut later this year added to the upbeat mood, since cheaper loans could encourage businesses to invest more in tech services.
TCS and Infosys below yearly highs
After months of underperformance, these gains make Indian IT stocks look appealing again.
Demand for digital transformation and AI is stabilizing, but leading stocks like TCS and Infosys are still below their yearly highs, so there could be room for further recovery if demand picks up.