Coforge, OFSS, TCS, Infosys: IT Stocks Surge Up To 8.1%; Why Are Tech Stocks Rising Today?

IT Stocks Today, July 28: Indian IT stocks rallied sharply in early trade on Tuesday, bucking the weakness across Asian technology markets. Shares of Coforge, Oracle Financial Services Software (OFSS), TCS, Infosys, Tech Mahindra, Persistent Systems and Mphasis traded firmly higher, lifting the Nifty IT index by nearly 2.5%.

The rally comes even as semiconductor stocks across South Korea, Japan and China witnessed heavy selling amid concerns over AI spending and rising competition from Chinese chipmakers.

Nifty IT Index Climbs 2.5%

At around 9:30 am, the Nifty IT index was trading at 30,170.60, up 2.48%. Major gainers were Coforge that surged 8.13% after its post-Q1 results management commentary, emerging as the top performer in the sector.

Hexaware Technologies gained 5.25%,

Mphasis rose 4.64%, Persistent Systems climbed 3.26%, TCS advanced 3.01%, Tech Mahindra gained 2.95%, Infosys rose 2.57%, Oracle Financial Services Software (OFSS) added 2.26%, and HCLTech gained 1.81%

Why Are IT Stocks Rising Today?

Falling crude oil improves global risk appetite: Brent crude extended its sharp decline after easing geopolitical tensions between the US and Iran. Lower oil prices are expected to ease inflationary pressures globally and reduce concerns over input costs, improving the outlook for corporate spending, including technology investments.

Selective buying after recent correction: Several frontline IT stocks had witnessed weakness over the past few months. Tuesday’s gains indicate investors are accumulating quality technology names such as TCS, Infosys and Coforge after the recent correction.

Domestic IT outperforms global chip stocks: Interestingly, Indian software companies outperformed despite a sharp sell-off in global semiconductor stocks. South Korea’s KOSPI plunged over 8%, while Japan’s Nikkei fell around 4% as investors dumped AI-linked chipmakers. Nvidia declined 5% overnight after reports that it could provide massive financing guarantees for OpenAI as part of a large data centre project, raising concerns over capital requirements for the AI ecosystem.

Samsung Electronics, SK Hynix, Tokyo Electron and ASML-linked stocks were among the biggest losers in Asia.

Unlike semiconductor manufacturers, Indian IT services companies have relatively limited direct exposure to chip manufacturing cycles, allowing investors to differentiate software exporters from hardware and semiconductor businesses.

Strong US tech earnings optimism: Indian IT companies derive a significant share of their revenue from North America. Investors are positioning ahead of key earnings from major US technology companies and looking for signs that enterprise technology spending remains resilient despite macroeconomic uncertainties.

Positive expectations around AI-led digital transformation and cloud spending have supported sentiment in Indian IT stocks.

Coforge Q1 Performance

Coforge reported a strong top-line performance for the June quarter, marking the first quarter to include the consolidation of Encora Holdings. As a result, sequential and year-on-year comparisons are not directly comparable.

The IT services firm posted US dollar revenue of $592.2 million, up 21.1% from $489.1 million in the March quarter. In rupee terms, revenue rose 24.2% quarter-on-quarter to Rs 5,527.7 crore.

However, net profit declined 15.3% sequentially to ₹518.6 crore from Rs 612.3 crore, primarily due to one-time expenses related to the Encora acquisition and other exceptional items. During the quarter, the company incurred Rs 61.3 crore towards acquisition and integration costs, Rs 5 crore in legal expenses and Rs 10.8 crore as provisions for customer receivables. These were partly offset by Rs 22.1 crore in foreign exchange gains following the devaluation of the Bolivian currency, resulting in a net exceptional impact of ₹55 crore.

The combined EBIT margin of 16% is ahead of the company’s full-year guidance of 15.5%. According to Coforge’s CEO Sudhir Singh, the margin expansion from last year reflects the impact of AI infusion at scale not just in client delivery, but also in internal operations.

“With the Encora acquisition completely operationally integrated and with strong demand, record visibility, and a rapidly expanding pipeline of AI-led opportunities, FY27 is shaping up to be an exceptional performance year for the firm,” Singh said further.