Indian IT shares surged on Tuesday, extending their rebound from the previous session. According to The Economic Times, the Nifty IT index jumped more than 4% to hover near 29,566 on Tuesday morning, while the broader Nifty index was trading with only marginal gains. The sectoral index has now gained more than 8% (over 2,205 points) in just three sessions, demonstrating strong momentum in the technology sector. As per Business Standard, the Nifty IT Index rallied 3.67% to 27,430.30, rising 0.26% in three consecutive trading sessions.
Heavyweight Infosys shares were the top gainers on the index, jumping nearly 5% to trade at ₹1,198 apiece on NSE. As reported by The Economic Times, shares of the IT major have now risen about 9% over the past three days, though they remain down 27% in 2026 so far and 10% over the past month. Other major gainers included Coforge, LTI Mindtree, HCL Technologies, Mphasis, Persistent Systems and Tech Mahindra shares jumped around 4% each, while OFSS and Tata Consultancy Services (TCS) shares surged more than 3% each, with Wipro shares rising over 2%. According to Business Standard, Coforge surged 4.5%, Infosys gained 4.04%, LTM rose 3.95%, Tech Mahindra advanced 3.68%, Persistent Systems climbed 3.54%, Oracle Financial Services Software jumped 3.26%, HCL Technologies and Mphasis both gained 3.16%, TCS rose 2.94%, and Wipro increased 1.97%. Latest data shows Coforge, Persistent Systems and Mphasis have all gained between 10% to 12% over the last two trading sessions, while Tech Mahindra gained 9% over Monday and Tuesday, and Infosys and TCS have gained 6.6% and 4% respectively.
The momentum in IT counters comes after a sharp correction that has dragged sector valuations closer to levels last seen during the 2008–09 subprime crisis. According to The Economic Times, while doomsday prophets continue to debate about the future of IT companies following fresh AI advancements, investors were quick to analyse the cheap valuations that have emerged from this correction. Additionally, a sharp decline in the rupee also helped the IT stocks, as the IT companies mostly derive their revenue in US dollars. As per Business Standard, the partially convertible rupee was hovering at 96.3350 compared with its close of 96.2000 during the previous trading session, also touching an all-time intraday low of 96.3850 in early trade. The rupee made a record low of 96.38 against the US Dollar on Tuesday, with weakness in the currency providing a margin tailwind to IT companies who get most of their revenue from the North American Market in US Dollars and other currencies, whereas most of their fixed costs are in the local currency.
According to a report in Moneycontrol, Tata Group giant TCS has rolled out an annual salary hike of 5% on average, with employees in the A+ band getting an average hike between 9% to 13%, those in the 'A' band getting a 5% to 9% hike, 'B' band getting a 1% to 3.5% hike, while those in the 'C' band getting a negligible or negative salary change. TCS has also asked managers to report 5% of the employees as underperformers**. Earlier in the day, brokerage firm CLSA retained its "high-conviction outperform" rating on Coforge with a price target of ₹2,075, calling the stock a big beneficiary of the AI cycle and projecting an upside potential of 54% from Monday's closing levels.
