IT stocks recovered in Thursday’s session after a six-day decline, with the Nifty IT index rising close to 1%, as investors engaged in value buying following sustained profit booking.
Wipro led the gains with a nearly 2% rise, while HCL Technologies and Mphasis gained 1.34% and 1.32%, respectively. Other major IT players, including Infosys, Tech Mahindra, Tata Consultancy Services (TCS), and LTIMindtree, also advanced up to 1%, with nine out of ten constituents of the Nifty IT index trading in the green.
Key Drivers Behind the Rally
- Value Buying: After a 4.13% drop over six sessions, investors stepped in to buy beaten-down IT shares, triggering a short-term rebound.
- US Rate Cut Expectations: Market participants are optimistic about potential US Federal Reserve rate cuts, with the next Fed meeting scheduled for January 27–28, 2026. Comments by US President Donald Trump on the upcoming Fed chair appointment have also fueled expectations of continued monetary easing.
- Better Q3 Performance Anticipation: Investors are anticipating stronger demand and improved results in the December quarter, with earnings announcements around the corner. TCS and HCL Technologies have scheduled board meetings on January 12, 2026, to approve quarterly and nine-month financial results.
The rebound comes as a relief for investors after a brief period of profit booking and highlights the resilience of India’s IT sector amid global macroeconomic uncertainty.
Disclaimer: This news article is based on market reports and official stock exchange data. It is intended for informational purposes only and should not be considered investment advice. Investors are advised to consult certified financial experts before making any investment decisions.
