The Nifty IT index emerged as the second-biggest sectoral gainer after the realty index, rising 2.8 percent over the last two sessions. According to reports from Moneycontrol, IT shares extended gains for a second straight session on Tuesday, tracking a broader market rally amid easing concerns over crude prices following an interim arrangement between the US and Iran. The positive momentum comes as investors await the outcome of the US Federal Reserve's policy meeting on Wednesday, where the Fed is widely expected to maintain a neutral stance.
Investors are awaiting the outcome of the US Federal Reserve's policy meeting on Wednesday, the first under Chair Kevin Warsh after his nomination by President Donald Trump in January this year. As reported by Moneycontrol, the Fed is widely expected to keep its key policy rate unchanged at around 3.6 percent, where it has remained since December. Economists expect Warsh to adopt a neutral stance as inflation remains elevated and the US labour market has improved, reducing the need for immediate rate cuts. Oil prices have also declined sharply after an initial agreement between the US and Iran to end their conflict, raising hopes of easing inflationary pressures.
The broader market advanced for a third consecutive session on Tuesday, driven by positive global cues and softer crude oil prices. According to Moneycontrol, the Sensex jumped 544.15 points or 0.71 percent to settle at 76,808.48, while during the day it surged 582.41 points or 0.76 percent to 76,846.74. The Nifty climbed 135.25 points or 0.57 percent to close at 23,989.15, having risen as much as 148.7 points or 0.62 percent to 24,002.60 during the session.
A positive spillover effect was seen in IT stocks after shares of HCL Technologies rose 4 percent following the company's announcement of a ₹1,427-crore investment in homegrown artificial intelligence startup Sarvam AI. As reported by Moneycontrol, Coforge and LTM gained 4.59 percent and 2.8 percent, respectively. Brokerage firm Nomura maintained its 'buy' rating on the stock with a target price of ₹1,600, implying an upside potential of more than 42 percent from Monday's closing price of ₹1,122.30.
The ₹1,427-crore investment for a 10.46 percent stake in Sarvam AI marks the first sovereign AI investment by an Indian IT services company, according to Nomura. The brokerage noted that the transaction would help HCL Tech build industry-specific AI models and solutions for global clients, while also expanding Sarvam's multilingual AI capabilities in India and overseas markets. The investment comes as Indian IT services companies step up efforts to strengthen their AI capabilities amid rising demand for generative AI and sovereign AI solutions.
