IT stocks extended gains for the second consecutive session on Thursday, with the Nifty IT index rising nearly 2% after the opening bell. According to The Economic Times, the rally was driven by value buying amid a weaker rupee, with Indian IT stocks continuing to outperform global tech peers. The positive momentum came as the benchmark Sensex and Nifty 50 snapped a seven-day losing streak, providing broader market support for the IT sector's recovery.
Coforge emerged as the top performer, rising over 3% to ₹1881.15 on the BSE, while Persistent Systems climbed over 2% to ₹5660. As reported by The Economic Times, Infosys gained over 1% to ₹1132.15, with heavyweights including Wipro, TCS, and Tech Mahindra also trading higher. The recovery continued from Wednesday's session when IT stocks staged a 1.4% gain after three consecutive days of losses, with the sector's rebound led by key companies including Coforge, Persistent Systems, and HCL Technologies.
The rally was primarily attributed to value buying across midcap and heavyweight counters amid a weaker rupee, according to The Economic Times. Vinod Nair, Head of Research at Geojit Investments Ltd, noted that "reflecting weakness across Asian markets, Indian equities saw broad-based selling, though IT stocks outperformed on value buying and support from a weaker rupee." The recovery occurred despite ongoing global market headwinds, with Brent crude climbing above $91 a barrel and the U.S. 30-year Treasury yield rising to its highest level since 2007, as reported by Investing.com.
Asian markets broadly declined with Japan's Nikkei 225 dropping 2.5%, breaking a five-session winning streak as higher oil prices and rising bond yields hit technology stocks. South Korea's KOSPI erased an early gain of more than 3% and slid 1.6% after returning from Monday's holiday. The benchmark's decline was led by chip and electronic-component names, with Kioxia Holdings plunging 7.6%, Murata Manufacturing dropping 9.6%, and TDK losing 3.7%. Despite these challenges, India's Nifty 50 managed to slip only 0.3% during the session, with the Nifty IT index now underperforming Nifty 50 by ~11% in the year to date despite the sharp bounce from May lows.
