Nifty IT index surges 3% on India-U.S. trade deal optimism; Infosys, HCLTech, TechM, TCS lead rally

Information technology (IT) stocks witnessed strong buying momentum on Thursday, with the Nifty IT index surging over 3% in early trade, topping the sectoral chart. Investor optimism was driven by expectations of a potential India-U.S. trade pact and easing trade tensions, which could benefit IT exports. Hopes of a resolution in the H-1B visa issue further fueled the rally, while sustained buying across large-cap IT counters amplified the momentum.

The Nifty IT index rallied as much as 3.09% to 36,391.20, led by sectoral leaders such as Infosys, HCLTech , Tech Mahindra , and Tata Consultancy Services (TCS) . Notably, the IT index has been the worst impacted by the India-U.S. tariff row this year, falling over 3.5% in the past month, while it remains down about 21% from its 52-week high. On a positive note, the index has risen 17.7% from its 52-week low.

Among individual stocks, Infosys was the top gainer, surging 4.57% to ₹1,539.70, while HCLTech rose 3.28% to ₹1,534.70. Tech Mahindra gained 2.45% to ₹1,484.20, and TCS, the country’s most valuable IT stock, added 2.67% to ₹3,087. Other notable performers included Wipro (+2.32%), Coforge (+1.83%), LTIM (+1.62%), Mphasis (+3%), and Persistent Systems (+2.58%).

Trading volumes reflected strong investor interest, with Infosys seeing over 83 lakh shares change hands and HCLTech recording 16.5 lakh shares. The rally helped partially recover losses from the previous month, although stocks like Infosys remain down around 5.15% over the last 30 days.

Market analysts said expectations of a positive trade outcome between India and the U.S., coupled with strong corporate earnings in the IT space, are likely to keep the momentum intact.

“Comments from U.S. President Donald Trump and responses from Prime Minister Narendra Modi indicate an early trade deal. The expected deal involves some concessions from both sides. If the reported 15-16% tariffs on Indian exports to the U.S. materialize, it would be a big positive for the Indian economy and a major boost to stock markets,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

“Short-covering has the potential to spike large caps where there are big short positions,” he added.

Meanwhile, equity benchmarks continued their upward momentum for the fifth straight session on Thursday, with the Sensex reclaiming the 85,000 mark and the Nifty crossing 26,000 for the first time in the past 12 months.

In the first two hours of trade, the BSE Sensex jumped as much as 734 points, or 0.86%, to a fresh 52-week high of 85,182.56, while the NSE Nifty50 surged 217 points, or 0.80%, to a new 52-week high of 26,085.70.

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