Nifty IT rallies nearly 7% in two sessions as broker upgrade sparks buying

The Nifty IT index surged 3.65% to 30,516.05 on Tuesday, significantly outperforming the benchmark Nifty 50, which edged up 0.06% to 24,010.50.

The rally followed a foreign brokerage's upgrade of the Indian IT sector to Neutral from Underweight and the inclusion of Infosys in its model portfolio.

The index has gained 6.95% over the past two trading sessions, although it remains down 13.69% over the past year.

Market sentiment was further supported by improved global technology cues as investors rotated out of AI chipmakers into software and IT services companies. US software stocks outperformed semiconductor stocks overnight, boosting sentiment for Indian IT shares. Attractive valuations following the sector's prolonged correction also encouraged fresh buying.

Coforge led the gains today, soaring 9.23%, followed by Tata Consultancy Services (TCS), which climbed 4.77%. Mphasis advanced 4.06%, while Persistent Systems rose 3.91%.

Tech Mahindra gained 3.49%, LTIMindtree added 3.29%, Infosys rose 2.98%, and HCL Technologies advanced 2.93%. Oracle Financial Services Software (OFSS) and Wipro gained 2.04% and 1.42%, respectively.

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