Why Are TCS, Infosys, Coforge & Other IT Stocks Rising Today? Nifty IT Soars 4%; Key Reasons Behind IT Rally

Indian IT stocks continued its sharp rally on Tuesday, June 2, with investors returning to the sector after months of underperformance. The buying momentum helped the Nifty IT index emerge as one of the top-performing sectoral indices of the day, providing crucial support to the broader market even as weakness persisted across several banking, industrial and consumer-focused stocks.

Nifty IT Index Jumps Over 4% on Tuesday

Reflecting the strong buying interest, the Nifty IT index surged 1,240.20 points, or 4.15%, to 31,094.45 as of 12:51 PM IST. The index had opened at 30,265.70 against its previous close of 29,854.25, and continued to gain strength through the trading session as investors accumulated frontline technology names.

The sharp move marks the third consecutive session of gains for the IT pack, indicating improving sentiment towards the sector amid favourable global cues and renewed optimism around technology spending.

TCS, Infosys Among Top Gainers Today; Check HCLTech, Coforge, LTIMindtree & Other IT Shares Price

Several heavyweight IT stocks recorded strong gains during the session, leading the sector's upward move.

TCS Share Price Today

Shares of Tata Consultancy Services (TCS) led the rally among frontline IT stocks, surging 6.56% to Rs 2,448. The stock emerged as one of the biggest gainers.

Infosys Share Price Today

Infosys gained 5.64% to trade at Rs 1,270.30 on NSE on Tuesday at 12.51pm

Coforge Share Price Today

Mid-cap IT player Coforge advanced 4.12% to Rs 1,521.40.

HCLTech Share Price Today

Shares of HCL Technologies climbed 3.67% to Rs 1,239.

LTIMindtree Share Price Today

LTIMindtree rose 3.01% to Rs 4,322.60 on NSE at around 1pm.

Mphasis Share Price Today

Shares of Mphasis gained 2.90% to Rs 2,377.60.

Why Are IT Stocks Rising Today? Know Key Reasons Behind the IT Rally as Sensex, Nifty Struggle

AI-Focused Tech Spending Revival Supports Indian IT Companies

One of the key drivers behind the rally was improving sentiment in global technology markets, particularly around artificial intelligence (AI), cloud computing and enterprise software spending.

Investor confidence received a boost after US-based cloud software company Snowflake reported better-than-expected financial results and offered an encouraging outlook on demand for cloud services, software solutions and AI-related technologies.

The strong performance from a major global technology player helped ease concerns that businesses worldwide may be cutting technology budgets amid slower economic growth. Since Indian IT companies derive a significant share of their revenues from overseas clients, especially in North America, positive signals from global software firms are often viewed as indicators of healthy client spending and outsourcing demand.

Fed Rate Cut Expectations Improve IT Sector Outlook

Market participants are also increasingly betting that the US Federal Reserve could begin reducing interest rates later in 2026 if inflation remains under control.

Lower interest rates generally tend to support technology stocks because future earnings become more valuable when discounted at lower rates. This trend has already been visible across major US technology and AI-focused companies, and the positive sentiment appears to be spilling over into Indian IT counters as well.

Weak Rupee Benefits Export-Oriented IT Firms

Currency movements have also worked in favour of the sector.

The Indian rupee recently touched record lows against the US dollar before recovering some ground. Even so, the currency remains relatively weak compared to historical levels, creating a favourable environment for export-driven IT companies.

Since most large Indian technology firms earn a substantial portion of their revenues in dollars, a weaker rupee translates into higher rupee-denominated earnings and can support operating margins. Investors often view such currency trends as a positive earnings catalyst for the sector.

Attractive Valuations Bring Investors Back to IT Stocks

Over the past year, Indian IT stocks significantly underperformed broader markets amid concerns over slowing client spending, delayed project decisions and uncertainty surrounding the long-term impact of artificial intelligence on traditional outsourcing models.

The prolonged correction left several leading technology stocks trading well below their previous highs, prompting investors to reassess the sector as valuations became more attractive.

Nifty IT Technical Outlook; Is it Good Time to Buy IT Stocks?

" Nifty IT Index has witnessed broad-based buying over the last three weeks. Buying interest emerged after the NIFTY IT Index formed a Hammer pattern on the monthly charts for May. This pattern formed after a ~33% correction over the last four months. The formation of this pattern suggests a potential trend reversal. Since this pattern formed on the monthly chart, the bullish implications are likely for the short to medium term," said Jatin Gedia, Vice President - Technical Research at Teji Mandi

"Positive divergence on the momentum indicators also suggests that selling pressure is exhausting and the sector is now poised for a turnaround. We expect the IT index to trade with a positive bias and anticipate levels of 32300 - 32500 in the short term. The 29700 - 29500 zone is likely to act as support for the Index," the expert added.

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