Nifty IT Rallies 3% As Strong Nvidia Results Lift Technology Stocks

Information technology stocks rallied sharply on Friday, with TCS, Infosys, HCL Technologies and others gaining 2-5% as a surge in Nvidia shares following its upbeat results and outlook revived optimism around the global artificial intelligence trade.

The Nifty IT index jumped 3.27% to 31,205.10 around 10:35 am, emerging as the top sectoral gainer and sharply outperforming the broader market. All 10 constituents of the IT index traded higher, while IT stocks dominated the list of top Nifty 50 gainers.

L&T Technology Services was the top gainer in the Nifty IT pack, rising 5.14% to ₹4,693. TCS jumped 3.78% to ₹2,333.30, while HCL Technologies gained 3.85% to ₹1,331. Tech Mahindra advanced 3.27% to ₹1,636.90.

Infosys climbed 2.88% to ₹1,142, while Wipro gained 2.37% to ₹180.58. TCS, HCL Technologies, Tech Mahindra and Infosys were among the biggest gainers on the Nifty 50 in morning trade.

Broader IT Pack Also Gains

The strength in technology shares extended to the broader market, with four IT stocks featuring among the top 10 gainers on the BSE Midcap index.

KPIT Technologies jumped 4.1% to ₹612.30, Coforge gained 3.89% to ₹1,973.90, Mphasis rose 3% to ₹2,475.90 and Persistent Systems advanced 2.46% to ₹5,786.05.

The IT rally helped Indian benchmarks rebound after two consecutive sessions of losses. Around 10:35 am, the Nifty 50 was up 72 points, or 0.30%, at 24,163, while the Sensex gained 355 points, or 0.46%, to 77,289.

The benchmarks had fallen about 1% each over the previous two sessions and remained on course for a third consecutive weekly decline amid pressure from elevated crude oil prices and US Treasury yields.

Nvidia Rally, Fed Speech In Focus

Global cues remained mixed but broadly supportive after strong quarterly results from Nvidia lifted AI-linked technology and semiconductor stocks. The Nasdaq ended around 1.5% higher, while Asian markets were mixed, with Japan trading firmer and South Korea weaker.

Investors will closely track Fed Chair Kevin Warsh's first Jackson Hole keynote for clues on the US central bank's September policy outlook. Market participants are also watching whether firm US bond yields and inflation concerns could influence the path of interest rates.