Relief rally lifts IT stocks; Infosys, TCS, TechM drive markets higher for 5th straight session

Indian equities extended their gaining streak for the fifth consecutive session on Wednesday, supported by a strong rally in information technology (IT) heavyweights. The benchmark BSE Sensex rose 213 points, or 0.26%, to close at 81,986, while the NSE Nifty50 advanced 70 points, or 0.28%, to reclaim the 25,000 mark after nearly a month, settling at 25,050.

The BSE IT index jumped 2.6%, staging a sharp relief rally after recent selling pressure, as investors engaged in value buying across sectoral leaders such as Infosys , TCS , and Tech Mahindra . The index surged as much as 2.8% to cross the 35,000 mark, with all major constituents ending in the green. The Nifty IT index also advanced 2.7% to close at 35,690.

The rally in IT counters came ahead of U.S. Federal Reserve Chair Jerome Powell’s address at the Jackson Hole Symposium on Friday, with investors also awaiting the minutes of the Fed’s July policy meeting later in the day. Hopes of policy clarity spurred buying interest in IT stocks, which remain sensitive to global demand and interest rate expectations.

“Today’s advance was largely supported by buying in large-cap IT stocks and steady domestic sentiment," said Ajit Mishra – SVP, Research, Religare Broking. In the absence of any major domestic triggers, global cues such as updates from the Jackson Hole symposium, geopolitical developments, and discussions in the GST Council meets will remain on investors’ radar, he said.  

According to JM Financial, the rising probability of a Fed rate cut, coupled with expectations that U.S. tariffs may have only a limited impact on inflation, suggest that companies could absorb most of the tariff burden, a development that has eased concerns around IT spending.

Infosys led the rally on the Sensex, climbing 3.78%, followed by Tata Consultancy Services, which gained 2.64%. Other majors including Tech Mahindra, HCL Tech, Wipro, and LTIMindtree also closed higher, rising between 1-2%.

Among the Sensex pack, 15 stocks ended higher and 15 lower. Top laggards included Bharat Electronics, Bajaj Finance, Tata Motors, Trent, and ITC, which slipped between 0.75% and 2.16%.

Sectorally, FMCG and Realty indices also contributed to the gains, reflecting strong consumer sentiment and momentum in the ongoing real estate upcycle. Optimism around potential GST rate reforms continued to provide support to auto and consumer goods stocks.

“Markets witnessed sustained buying in IT and FMCG majors following a favorable quarterly outlook and continued digital transformation spends,” said Vaibhav Vidwani, Research Analyst at Bonanza Portfolio.

The first quarter of the current fiscal (Q1 FY26) was mixed bag for IT sector despite near-term pressures amid a soft demand environment. Among the top six IT companies, constant currency (cc) revenue growth ranged between -3.3% and +2.6% sequentially. Infosys and HCL Tech beat expectations, while TCS and Tech Mahindra underperformed, according to JM Financial.

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