Stock market today | IT stock to buy today: Amid positive buzz around the India-US trade deal, Indian IT stocks have witnessed a resurgent rally since early-morning trading on Wednesday. Shares of the leading Indian IT majors, Tata Consultancy Services (TCS), Infosys, HCL Technologies, Wipro, Tech Mahindra, etc., demonstrated a sharp upside movement. However, L&T Technologies Services shares attracted the most attention from bulls, rising up to 10% during the intraday session.
According to stock market experts, this tectonic rally in Indian IT stocks can be attributed to positive buzz around the India-US trade deal. They said that a stable Indian Rupee and an AI-meltdown are also fueling the resurgence in Indian stocks.
Pointing towards the India-US trade deal as the primary reason for the resurgent rally in the Indian IT stocks, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “The US Secretary of State Marco Rubio's visit to India and Donald Trump's statement at the Oval Office have triggered a positive buzz around the India-US trade deal. The US President has said that India and the US are ‘pretty close’ to a trade deal, which will be very different from earlier pacts. The US Secretary of State MarcoRubio also signalled about the closing of the deal in the near-term.”
Gorakshkar said the India-US trade deal is a positive development for Indian IT companies, as it will provide clarity after Trump's tariffs.
“The stability in the Indian Rupee is also a reason for IT stocks' rally. As Indian IT companies deal in the US Dollar (USD) terms, a stable local currency would provide better returns on the deal wins as the continued depreciation of the Indian Rupee had created an uncertainty about the pricing of their services,” said Anuj Gupta, a SEBI-registered market expert.