Nifty IT Jumps for Fourth Straight Session, Gains Nearly 16% in July - Infosys, TCS, OFSS Lead the Rally

29 Jul 2026 , 11:23 AM

Indian IT stocks continued their impressive rally on Wednesday, with the Nifty IT index surging nearly 3% in intraday trade as strong Q1 FY27 earnings, improving investor sentiment, and a rotation away from Asian semiconductor stocks fueled buying across the sector.

The Nifty IT index climbed to an intraday high of 31,330.50 on the NSE and was trading at 31321.2, up 2.97%, at around 11:21 AM, significantly outperforming the broader market. During the same period, the Nifty 50 gained 1.03%, highlighting the renewed strength in technology stocks.

The latest rally marks the fourth consecutive session of gains for the IT index, which has surged 9.66% over the past week.

Nifty IT Recovers Over 21% From July Low

The technology index has staged a remarkable comeback after months of weakness.

So far in July 2026, the Nifty IT index has gained nearly 16%, while recovering more than 21% from its 52-week low of 25,699.10, touched on July 1, 2026.

The recovery reflects improving confidence in India’s IT sector after concerns around global AI-related technology valuations and demand had weighed on the sector earlier this year.

IT Stocks Outperform Broader Market

Buying was broad-based across the sector, with all 10 constituents of the Nifty IT index trading in positive territory.

As of 11:15 AM on the NSE, major IT stocks were trading higher:

• Infosys: ₹1,159.20 (+4.84%)
• TCS: ₹2,454.20 (+2.38%)
• HCL Technologies: ₹1,347.00 (+2.15%)
• Wipro: ₹184.98 (+2.13%)
• Tech Mahindra: ₹1,655.90 (+1.27%)
• LTIMindtree: ₹4,419.10 (+2.55%)
• Persistent Systems: ₹5,526.00 (+1.80%)
• Oracle Financial Services Software (OFSS): ₹11,570 (+2.08%)

Earlier in the session, Coforge emerged as the top-performing stock, gaining nearly 4%, supported by its strong Q1 FY27 earnings and upbeat business outlook.

What’s Driving the Nifty IT Rally?

Several factors are contributing to the sharp rebound in Indian IT stocks.

Strong Q1 FY27 Earnings

Better-than-expected quarterly earnings from major IT companies have improved investor confidence. Healthy deal wins, resilient margins, and optimistic management commentary have reinforced expectations of a gradual recovery in technology spending.

Rotation Away From Asian Chip Stocks

Weakness in semiconductor-heavy Asian markets has also benefited Indian IT companies.

Heavy selling in chipmakers dragged major Asian indices lower:

• South Korea’s Kospi index declined sharply amid selling in semiconductor stocks.
• Japan’s Nikkei also fell as AI-related technology shares came under pressure.

As semiconductor stocks corrected, investors shifted allocations toward Indian IT services companies, which are seen as beneficiaries of improving global technology spending without direct exposure to chip manufacturing cycles.

Positive Domestic Market Sentiment

The broader Indian equity market also supported the rally.

During intraday trade:

• BSE Sensex gained 827 points (1.07%) to 77,593.
• Nifty 50 advanced 218 points (0.90%) to 24,203.

Strong domestic market sentiment encouraged buying across cyclical and technology stocks.

Technical Outlook: Key Levels to Watch

Market experts believe the Nifty IT index is approaching an important technical resistance zone.

Resistance

The 31,800–32,000 range remains the immediate hurdle for the index.

This area coincides with:

• The 200-day Exponential Moving Average (EMA) near 31,785.
• A significant horizontal resistance around 32,000.

A decisive close above this range could strengthen the bullish momentum and open the door for further gains.

Support

On the downside, 29,500 remains the immediate support level.

This support is backed by:

• The 100-day EMA.
• The price gap created during the July 28, 2026 rally.

Holding above this level would help maintain the current positive trend.

Why Investors Are Turning Positive on IT

Investor sentiment has improved considerably as several concerns that weighed on the sector earlier in the year have started easing.

Key positives include:

• Nearly 16% rally in the Nifty IT index during July.
• More than 21% recovery from the July low.
• Strong Q1 FY27 earnings across major IT companies.
• Broad-based buying across all index constituents.
• Continued outperformance versus the benchmark indices.
• Improved outlook for technology spending and deal pipelines.

Risks to Monitor

Despite the strong momentum, investors should continue monitoring several factors:

• The 31,800–32,000 resistance zone remains a key technical hurdle.
• Failure to break above this range could lead to short-term profit booking.
• Global technology and semiconductor market volatility could influence investor sentiment.
• Future earnings, client spending trends, AI investments, and macroeconomic conditions will remain critical drivers for the sector.

Outlook

The Nifty IT index has staged one of its strongest recoveries of 2026, supported by encouraging Q1 earnings, improving investor confidence, and favorable sector rotation. With leading companies such as Infosys, TCS, Coforge, LTIMindtree, Wipro, and HCL Technologies posting solid gains, the sector has once again emerged as a market leader.

The next major trigger for the rally will be whether the index can decisively break above the 31,800–32,000 resistance zone. A successful breakout could pave the way for further upside, while investors will continue tracking global technology trends and corporate earnings for fresh direction.

 

Disclaimer – The stock/s and indices mentioned in this article are discussed solely for informational and educational purposes. It should not be construed as investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult a financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.