The IT sector demonstrated sustained momentum on Wednesday, with the NIFTY IT index rising 1.5% to 29,007, extending its winning streak to four consecutive sessions with a cumulative gain of 4.3% from 27,795.75 recorded on June 12. According to The Hindu BusinessLine, all nine constituents of the index were trading in positive territory, with the sector showing resilience as investors positioned themselves ahead of the US Federal Reserve's policy decision due later in the day. The rally reflects improving market sentiment triggered by the US-Iran peace deal, softer crude oil prices, and global market movement, with the index crossing the significant 29,000 mark for the first time during this extended rally.
Infosys, Wipro, Tech Mahindra and TCS emerged as the top gainers, advancing up to 2% during the session, as reported by The Hindu BusinessLine. Oracle Financial Services Software (OFSS) and LTIMindtree were the only IT stocks to trade lower, bucking the broader sector trend. Other major IT companies including Tata Consultancy Services Ltd., Wipro Ltd., HCL Technologies Ltd. and Mphasis Ltd. also ended higher, demonstrating broad-based strength across the sector. The performance was notable as Sonata Software, which is not part of the NIFTY IT index, jumped as much as 19.8% to ₹311.90 on the NSE, demonstrating broader sector strength.
The sustained rally comes as investors closely monitor the Federal Reserve's policy meeting, which marks the first chaired by Kevin Warsh. While policymakers are widely expected to leave rates unchanged, market participants are assessing whether the central bank's commentary signals any shift in its policy outlook. A dovish tone from the Fed is generally viewed as positive for technology and IT stocks as lower borrowing costs can support corporate technology spending and improve demand visibility for outsourcing and digital transformation projects. The US remains the largest market for Indian IT services companies, making Fed policy decisions a key sentiment driver for the sector. As per The Hindu BusinessLine, investors will now closely watch the Fed's policy statement and commentary for indications on future interest-rate moves, which could influence global technology spending trends and demand prospects for Indian IT companies.
HCL Technologies announced on Monday that it will acquire a 10.46% stake in Bengaluru-based startup Sarvam for ₹1,427.25 crore, becoming its lead strategic investor, as reported by The Economic Times. The investment comes amid growing calls for India to build sovereign AI capabilities, particularly after US government export controls restricting foreign nationals' access to Anthropic's Fable 5 and Mythos 5 models. TCS secured a multimillion-euro deal from global life and pensions insurer Canada Life to modernise its IT infrastructure across Europe, though the exact financial value was not disclosed. Wipro launched its Applied AI Center of Excellence for Claude models powered by Anthropic, inaugurated at the company's innovation hub in Bengaluru and expected to help enterprises accelerate AI adoption and deployment. Infosys announced a collaboration with Valmet to reimagine IT operations through AI-accelerated transformation, while TCS announced a multi-year partnership with Elopak ASA, a global leader in paper-based packaging and filling equipment.
Global market signals remained mixed, with Wall Street's benchmark S&P 500 declining 0.6% to 7,511.35 on Tuesday, while the Dow Jones Industrial Average gained 0.6% to close at a record 51,999.67. The technology-heavy Nasdaq Composite fell 1.2% to 26,376.34 as investors reassessed valuations in major AI-linked technology stocks, with Nvidia shares, Broadcom and Micron Technology declining amid renewed concerns over a potential AI-driven market bubble. Despite the weakness in US technology stocks overnight, Indian IT shares remained resilient, demonstrating the sector's ability to maintain momentum despite global market volatility. Elon Musk's SpaceX gained for the third straight day since its Wall Street debut, providing some positive sentiment in the broader technology space.
