IT Stocks Rally: TCS, Infosys, HCL Tech, Persistent Gain Up To 2.6% As Global AI Trade Unwinds

IT stocks continued to outperform the broader market on Thursday, with heavyweight stocks such as TCS, Infosys, HCL Technologies, Tech Mahindra, Wipro and Persistent Systems trading higher even as benchmark indices remained largely range-bound.

Persistent Systems emerged as the top gainer among major IT stocks, rising 2.6%, while Wipro climbed 2.5%, Infosys gained nearly 2%, Tech Mahindra added 1.9% and TCS advanced over 1%.

Market experts attributed the rally to improving investor confidence after largely in-line June quarter earnings and a rotation of global funds away from overheated AI-driven semiconductor stocks toward Indian IT companies.

Ankur Punj, managing director & business head at Equirus Wealth, said, “While the Nifty IT index has

rallied over 17% this month, the Q1 earnings of most of the frontline tech firms were in line with estimates that helped regain investors’ confidence.”

He added that the AI-driven rally in Asian technology markets such as South Korea’s KOSPI and Taiwan has cooled in recent weeks, prompting investors to revisit Indian IT stocks.

V K Vijayakumar, chief investment strategist, Geojit Investments Ltd, said, “The Indian market is likely to respond differently since the sell-off in chip stocks and FPIs turning buyers in India, so far in July, are turning favourable for Indian market. KOSPI is down 31 % during the last one month and FPIs have turned big sellers in chip stocks. Indian economy continues to be resilient and this will provide fundamental support to the market.”