IT shares extend rally for 3rd day after U.S. Fed rate cut; Infosys, HCLTech, TCS lead gains

Indian IT stocks extended their rally for the third straight session on Thursday, buoyed by the U.S. Federal Reserve’s decision to cut interest rates. Index heavyweights such as Infosys, HCLTech, and LTIMindtree led the gains, while sectoral leaders including Tata Consultancy Services (TCS), Tech Mahindra, and Wipro also traded higher with modest advances.

Infosys emerged as the top gainer in the Sensex pack, rising 1.5%, while TCS , Tech Mahindra , HCLTech , and Wipro were up between 0.2% and 0.6%. The Nifty IT index climbed nearly 1%, driven by LTIMindtree, which surged as much as 3.6%. Other IT majors such as Coforge, Mphasis, and Persistent Systems also traded in positive territory.

The broader markets were firm, with the BSE Sensex up 196 points at 82,890 and the NSE Nifty50 advancing 47 points to 25,376 — both gaining around 0.25%.

After months of underperformance, the IT sector has regained ground this month, supported by favorable global cues and Infosys’s recent buyback announcement. Sentiment was further lifted by expectations of rate cuts from the U.S. central bank.

According to market experts, the Fed’s rate cut, combined with optimism over U.S. tariffs, bodes well for India’s IT sector, which is highly sensitive to global economic trends and interest rate movements.

Overnight, the Federal Reserve pivoted toward monetary easing by cutting its benchmark interest rate by 25 basis points (bps) to 4.00–4.25% in its September 2025 meeting — the first reduction since December 2024. The move was approved in an 11-to-1 vote, with Governor Stephen Miran dissenting in favor of a steeper 50 bps cut.

The Fed also signaled a dovish stance, leaving the door open for two additional quarter-point cuts later this year. Chair Jerome Powell underscored the central bank’s dual mandate of maximum employment and price stability, describing the current backdrop as an “unusual situation” with competing risks.

“The September cut confirms that the Fed has begun a shallow easing cycle. While disinflationary progress is evident, the Fed remains cautious given sticky core inflation and ongoing trade-related risks,” SBI Securities noted in a report.

“Another two cuts in CY25 remain possible if upcoming inflation and labor market data confirm a softening trend. For markets, the policy stance is broadly constructive, offering near-term clarity and curbing volatility,” the report added.