Nifty IT up by 2%, Infosys shares rise 3%; here’s why

The Nifty IT index was up 2%, at 39,476.45, with all ten constituents trading in the green in today’s session. The IT index has gained more than 6% in the past month, but only 2.64% in six months. On a year-to-date basis, the index has declined 9.11%. 

The index saw a rebound in the past few sessions as individual stocks like Infosys and Accenture announced positive developments. Meanwhile, the declining rupee and soft US inflation data boosted investor sentiment in the IT sector. Infosys, over the weekend, announced two notifications. The first one was that the company clarified that it was not aware of any material event behind the sudden spike in its American depository receipts (ADRs), which had jumped sharply to fresh record highs on Friday. 

The shares of the IT company jumped 3% intraday to Rs 1,688, providing support to the Nifty benchmark index to stay above the 26,100-mark. This rise was bolstered by the announcement that Infosys has received the final nod from a US court to settle class action suits related to the Infosys McCamish Systems data breach incident two years ago. “On December 18, 2025, the court granted final approval on the settlement. If the settlement is not appealed within 30 days, then it will become effective and resolve all allegations made in the class action lawsuits without admission of any liability,” the company said in the filing. McCamish had agreed to pay $17.5 million (approximately ₹150 crore) into a fund to settle the class action suits related to the incident and was waiting for the terms of the settlement agreement to be approved by the US court to resolve the legal cases.  

On the other hand, Accenture, which follows a Sep-Aug earnings calendar, saw a dollar revenue growth of 6% year on year, to $18.7 billion in Q1FY26.  The company saw its advanced AI booking reach $2.2 billion in Q1FY26 from $1.2 billion in new bookings in Q1FY25. The company also disclosed that it had reached a milestone with advanced AI, bringing in approximately $1.1 billion in revenue. The company, which was the first in the industry to call out AI-related revenues, classifies advanced AI as Gen AI, agentic AI, and physical AI, and does not include data, classical AI or robotic process automation.

The company’s adjusted margins saw a 30-basis point expansion from 16.7% in Q1 of FY25 to 17% for the first quarter of fiscal 2026. The total bookings of $20.9 billion for the quarter also included 33 clients with a quarterly run rate of over $100 million. During the quarter, it spent nearly $374 million on nearly 6 strategic acquisitions.  

According to a report by Kotak Institutional Securities, Accenture reported good 1QFY26 results with revenue growth of 5%, at the upper end of the guidance band. “Against the backdrop of a strong quarter and reasonable deal wins, the lack of tightening of FY2026 guidance band was a tad disappointing,” the report said.