Shares of India’s top information technology companies rallied sharply on the National Stock Exchange on Wednesday with the Nifty IT index surging nearly 4 per cent to a 30-day high, as investors moved money out of battered global semiconductor and artificial intelligence infrastructure stocks and positioned ahead of the US Federal Reserve’s interest rate decision due today.
TCS climbed 5.07 per cent to Rs 2,411.90, Coforge surged as much as 9.26 per cent to Rs 1,670, Tech Mahindra gained 3.80 per cent, HCLTech rose 3.19 per cent and Infosys advanced 3.28 per cent, making the sector the best-performing pack on Dalal Street for the session.
The Nifty IT index touched an intraday high of 30,572.40 before settling near 30,564.75, up 3.81 per cent, or 1,122.85 points, on the day.
Coforge earnings and order book drive the rally
Coforge led the sectoral gains after reporting 1.1 per cent organic revenue growth for the June quarter, aided by its acquisition of Encora.
The company also announced fresh order wins worth $691 million during the quarter, taking its total executable order book to roughly $2.23 billion, a pipeline that reinforced investor confidence in its medium-term growth prospects and helped the stock outperform the broader index.
Rotation trade: money flows out of chips and into Indian IT
The bulk of Tuesday’s buying came from a rotation trade. Global semiconductor and AI infrastructure stocks have come under heavy selling pressure on concerns that the massive capital spending on AI may not deliver the returns investors were counting on, and that pressure has pushed money toward Indian IT services companies, seen as relatively insulated from the AI capex slowdown even as they draw a large share of revenue from the US.
The move extends a broader turnaround for a sector that had been the worst performer on Dalal Street for much of 2026, down as much as 22 per cent for the year at one point. The Nifty IT index has now gained more than 13 per cent over the past 30 days, putting it on track for its best month in two years if the gains hold.
Fed verdict looms over the rally’s staying power
Attention now turns to the Fed, whose two-day meeting concludes Wednesday with a 2 pm ET statement and a press conference from Chair Kevin Warsh.
Economists largely expect the central bank to hold its benchmark rate at 3.50–3.75 per cent for a fifth straight meeting, though the tone of the accompanying commentary — and any signals on US corporate technology spending — will be watched closely for its bearing on Indian IT stocks, which earn a significant share of revenue from North America.
Harshal Dasani, business head at INVasset PMS, said the Fed outcome and the tone of US Big Tech guidance would decide “whether the IT sector’s rally extends or exhausts.” He added that markets are leaning toward an earlier easing path after stronger US growth data, with short positions in a sector that had fallen to multi-year lows now being covered ahead of both events.
Some brokerages remain cautious on the sector’s fundamentals even as stock prices rebound. JM Financial noted that while companies have largely delivered in-line to better-than-expected June-quarter results, the underlying demand narrative — shaped by macro uncertainty and AI-led productivity gains — remains largely unchanged.
