Indian information technology stocks rallied sharply on Tuesday, amid a selloff in Asian technology shares, as strong quarterly earnings from HCL Technologies, accelerating artificial intelligence (AI) revenue and robust deal wins boosted sentiment towards the sector. The Nifty IT index surged 3.03 percent to 29,208.20, emerging as the top sectoral gainer, with TCS and HCLTech leading the advance.
The rally came amid renewed pressure on global technology stocks amid concerns over stretched AI valuations, heavy investment spending and the sustainability of the AI-driven growth cycle. The weakness in global AI stocks could potentially ease some competitive pressures on traditional IT services companies.
TCS was the biggest gainer among the major IT stocks, jumping 5.12 percent to Rs 2,233.70. It was followed by HCLTech, which rose 3.70 percent to Rs 1,268.20. Tech Mahindra gained 2.75 percent to Rs 1,511.40, while Infosys advanced 2.08 percent to Rs 1,041.25.
The gains in IT stocks also helped lift the broader market. At 9:53 am, the Sensex was up 605.16 points, or 0.84 percent, at 72,529.84, while the Nifty 50 gained 185.85 points, or 0.83 percent, to 22,549.20. However, market breadth remained negative, with 1,520 stocks advancing against 1,748 declines. The Nifty Midcap 100 rose 0.33 percent, while the Nifty Smallcap 100 slipped 0.89 percent. India VIX declined 4.72 percent to 14.53.
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