IT Stocks Rally as TCS & Tech Mahindra Lead Gains Amid US-India Trade Optimism

Indian IT stocks extended their upward run for the third consecutive session on Wednesday, November 12, 2025. With optimism around a potential US-India trade deal, easing concerns over the US government shutdown, and expectations of another US Fed rate cut, the sector saw renewed investor interest. Major names like TCS share price and Tech Mahindra share price captured attention, contributing to a broad rally in the Nifty IT index today.

The sentiment in the tech sector reflected a careful but visible alignment of domestic and international cues. As the day progressed, IT stocks gained steadily, showcasing the market’s appetite for companies with strong global revenue exposure.

Market Performance

The broader IT sector showed robust performance as global developments supported domestic trading.

• Nifty IT index surged 2.16% intraday, reaching a high of 36,911, its highest since September 18.
• Three-day cumulative gain for the index: 5.10%
• All 10 constituents of the Nifty IT index traded in green, rising between 1.5% and 3.6%.

The rally was not confined to a few stocks; it reflected a sector-wide recovery influenced by multiple macro and geopolitical factors.

Main News: Drivers Behind the IT Rally

The IT sector rally was shaped by four key triggers, all converging to lift investor confidence:

1. Trump Softens on H1-B Visas
   US President Donald Trump’s recent comments indicated a more flexible approach to skilled talent from India. He emphasized the need for specialized talent, stating, “We have to bring in talent,” reassuring markets that IT companies can continue leveraging skilled Indian professionals in the US.
2. US Government Shutdown Nearing Resolution
   The Senate approved a temporary funding measure keeping most federal agencies operational until January 30, with some extended through September 30. The House of Representatives is expected to vote on the package, which the President has already supported. This eased fears over disruptions to economic activity in the US.
3. Progress on US-India Trade Deal
   Trump highlighted progress toward a trade agreement, promising to lower tariffs on Indian imports “very substantially.” This development indicated thawing tensions, particularly over India’s previous Russian oil purchases, and lifted sentiment among IT companies heavily reliant on US business.
4. Strengthening Hopes for US Fed Rate Cut
   Signs of a slowing US labor market and declining consumer sentiment reinforced expectations of another 25-basis-point rate cut next month. US private payrolls data indicated an average loss of 11,250 jobs per week, strengthening the likelihood of easing. Lower interest rates typically support technology spending, benefiting IT companies with global operations.

Company Performance: TCS, Tech Mahindra & Other Key Tech Stocks

The rally was broad-based, with all major IT players contributing to the sector’s gains.

Key Stock Movements:

• Tech Mahindra: +3.6%, reaching ₹1,459
• LTIMindtree: +3.5%
• Mphasis: +3.5%
• TCS share price, Infosys, HCL Technologies, Persistent Systems: +1.5% to 3%

Investor sentiment reflected the strong interconnection between Indian IT revenue and US market developments. Any positive change in policy, trade, or economic conditions overseas quickly translates into stock price movement.

Why IT Stocks Reacted Strongly

Indian IT companies derive a large portion of revenue from the United States. Hence, global policy, trade agreements, visa regulations, and macroeconomic cues have a direct impact on performance.

During this period:

• H1-B visa reassurances lifted confidence in workforce continuity.
• Trade deal progress suggested lower tariffs and improved business conditions.
• The resolution of the US government shutdown reduced uncertainty around operations.
• Fed rate cut expectations strengthened prospects for technology spending.

Summary

The IT sector’s three-day rally underscored the interplay between global developments and domestic market performance.

Key Highlights:

• Nifty IT index rose 2.16% intraday, with a three-day cumulative gain of 5.10%
• All 10 IT constituents traded higher.
• Tech Mahindra surged 3.6%, LTIMindtree and Mphasis up 3.5%
• TCS share price, Infosys, and other IT giants gained 1.5–3%
• Positive triggers: H1-B visa clarity, US-India trade progress, Fed rate cut hopes, US government funding resolution