IT Stocks Surge as Nifty IT Snaps 6-Day Losing Streak; Infosys, HCL Tech Lead Gains.

Market Performance

After a challenging six-day stretch of losses, Indian IT stocks staged a strong recovery today. The Nifty IT index jumped nearly 2% to 35,760.60, emerging as the top sectoral gainer in the market.

Investor sentiment turned positive as value-buying returned following the sharp corrections over the past week. A key catalyst for optimism was the hopeful news of the nearing end to the prolonged US government shutdown, which has been causing uncertainty for global markets, including Indian IT companies heavily reliant on US clients.

Main Highlights

• The Nifty IT index rose nearly 2% after a six-session losing streak.
• Value-buying was observed as investors returned following recent corrections.
• Positive sentiment is linked to expectations around the end of the US government shutdown.

Value-Buying After Corrections

The IT sector saw a noticeable dip between October 30 and November 7, as the Nifty IT index slipped nearly 2.7%. This followed a strong October rally, during which the index had climbed more than 7%, fueled by impressive Q2 results and an optimistic outlook for the second half of the year.

Despite delays in US-India trade negotiations, the sector managed to find support as investors sought value opportunities.

Hopes of an End to the US Government Shutdown

The US Senate advanced a bill on November 9 aimed at reopening the federal government, which has been partially shut for 40 days. The proposed measure will fund the government until January 30 and includes three full-year appropriations bills.

Indian IT companies, deriving a large portion of revenue from the US, stand to benefit from the potential resumption of normal government operations. Investor optimism grew as news of a possible end to the shutdown filtered into the markets, lifting IT stocks across the board.

Top IT Movers

The day saw strong gains among major IT players:

• Infosys: Rose nearly 3% to trade at ₹1,519.70.
• HCL Tech: Gained around 2%.
• Wipro, LTI, Mindtree, Mphasis: Each up nearly 2%.
• Persistent Systems, TCS, Coforge, Tech Mahindra: Rose over 1% each.

These gains reflect a combination of value-buying and improving investor confidence, fueled by global developments.

Company Details

• Infosys: Led gains on the Nifty IT index, reflecting strong investor interest in its US-centric business model.
• HCL Tech & Wipro: Followed closely, showing resilience despite earlier sectoral corrections.
• Coforge & TCS: Demonstrated steady upward movement, supported by midcap momentum.

Summary

After a challenging period, the IT sector reclaimed momentum today, with the Nifty IT index posting a nearly 2% rise, led by Infosys and HCL Tech. Investor sentiment was supported by value-buying and optimism surrounding the potential end of the prolonged US government shutdown.

The recovery highlights the sector’s resilience, as Indian IT companies continue to navigate global uncertainties while maintaining strong operational performance.