HCLTech, Tech Mahindra, Infosys and TCS Gain Up to 3%: Why IT Stocks Are Rising Today

IT stocks staged a strong recovery in early trade on Thursday, ending a two-session losing streak as investors returned to the sector ahead of key June-quarter earnings and encouraging global economic cues.

The rally was led by HCLTech, while Tech Mahindra, Infosys, TCS, Wipro, LTIMindtree and several other IT companies also traded in the green. Improved investor sentiment following softer US inflation data further supported the sector, although broader market gains remained capped due to geopolitical tensions in the Middle East.

IT Stocks Rebound Ahead of Q1 Earnings

The Nifty IT index rose 0.94% to 28,799.25 during morning trade, while the BSE Information Technology Index gained 0.74% to 27,883.81.

The sector's rebound also helped benchmark indices move higher.

• Sensex gained 184.38 points (0.24%) to 77,369.81
• Nifty50 advanced 42.40 points (0.18%) to 24,120.90

Investors are positioning themselves ahead of the June-quarter earnings announcements from Wipro and Tech Mahindra, following last week's results from TCS and HCLTech.

HCLTech Leads the Rally

Among Nifty IT stocks, HCLTech emerged as the top performer, climbing over 2%.

Other major gainers included:

• HCLTech – +2.12%
• Tech Mahindra – +1.40%
• LTIMindtree – +1.36%
• Wipro – +1.14%
• Mphasis – +1.14%
• Infosys – +0.69%
• TCS – +0.28%

On the broader BSE IT index, LTTS led the gains with a rise of nearly 3%, followed by Zensar Technologies, Birlasoft, ASM Technologies, Datamatics, Mastek and several mid-cap software firms.

Softer US Inflation Boosts Technology Stocks

One of the key reasons behind Thursday's rally was softer-than-expected US inflation data.

Cooling inflation has strengthened expectations that the US Federal Reserve may avoid aggressive interest-rate hikes in the coming months.

Technology companies typically benefit from lower interest rates because:

• Businesses are more willing to increase technology spending.
• Future earnings become more valuable in discounted cash flow models.
• Investor appetite for growth stocks improves.

These factors helped lift sentiment across the IT sector.

Earnings Season Keeps Investors Optimistic

The ongoing June-quarter earnings season is another major driver behind the rally.

Investors are closely watching management commentary on:

• Client spending trends.
• AI-related demand.
• Large deal wins.
• Revenue guidance for FY27.
• Margins amid global economic uncertainty.

Positive earnings from major software exporters could provide further momentum to the sector.

Middle East Tensions Limit Broader Market Gains

Despite strength in IT shares, broader market gains remained modest due to escalating geopolitical tensions.

Investor sentiment remained cautious after fresh conflict involving the US and Iran raised concerns over energy supplies and global market stability.

Even so, most sectoral indices traded higher.

Apart from IT, consumer durables, automobiles and chemical stocks also posted gains during the session.

What Investors Should Watch Next

Market participants will closely monitor:

• Wipro's June-quarter earnings.
• Tech Mahindra's Q1 results.
• Management outlook on AI spending.
• Global macroeconomic developments.
• US interest-rate expectations.

The sector's near-term direction will largely depend on corporate earnings and commentary regarding demand from North America and Europe.

Key Highlights

• IT stocks rebounded after two consecutive sessions of losses.
• HCLTech led gains, while Tech Mahindra, Infosys, TCS and Wipro also traded higher.
• Softer US inflation boosted sentiment for technology stocks.
• Investors are awaiting June-quarter earnings from Wipro and Tech Mahindra.
• Middle East tensions limited gains in the broader equity market.

FAQs

Why are IT stocks rising today?

IT stocks are gaining due to softer US inflation data, improved expectations for interest rates and optimism ahead of June-quarter earnings.

Which IT stock gained the most?

HCLTech led the rally among Nifty IT stocks, while LTTS was the top gainer on the broader BSE IT index.

Why does US inflation affect Indian IT companies?

Lower US inflation can reduce the likelihood of aggressive Federal Reserve rate hikes, supporting technology spending by global clients and improving investor sentiment toward IT companies.

Which IT companies are reporting earnings?

Investors are watching earnings from Wipro and Tech Mahindra after TCS and HCLTech kicked off the earnings season.

What risks remain for IT stocks?

Geopolitical tensions, global economic uncertainty and cautious corporate technology spending remain key risks for the sector.