The tech stocks are among the top stars in trade today. The Nifty IT Index rallied nearly 2% in early trade and is still holding over 1% gains. Some of the big winners include Infosys, Wipro, MphasiS, Coforge and the like.
The Nifty IT Index has been under pressure lately on the back of recession concerns in the United States prompted by Trump tariff. In fact, for 2025, the Nifty IT Index is down nearly 24% on worries about the demand environment.
Three factors fuelling rally in tech stocks
However, there is significant optimism in the markets today on the back of a host of factors. Here is a look at three key reasons-
US tech-heavy index Nasdaq ends Monday’s session higher
The tech-dominant Nasdaq Composite ended up 0.1% at 15,603.26 after a volatile session on Monday, April 7. The Index is still down 19% for the year so far in 2025 and investors saw buying in trade last evening. It was a rather choppy session for the US markets with Trump threatening additional 50% tariffs on China from April 9.
ALSO READDefence Bonanza: BEL stock allies 5% after mega deal Dollar Index under pressure
The US dollar is under pressure. The Dollar Index is hovering around the 103 mark, off significantly from its January highs of 110. The Dollar Index is now down over 5% in 2025 so far and this is considered to be a crucial factor to watch for the overall tech industry.
TCS Q4 earnings on April 10
All eyes are on the TCS earnings due on April 10. The importance of the TCS Q4 results lie in the fact that it is not just an indicator of the company’s financial health but overall industry trends too. Its global client base and pipeline of large deals is indicative of the demand environment and the investors look forward to hearing from the company’s management on the outlook going forward.
ALSO READGodrej Consumer shares surge 2.4%: 3 reasons why Nuvama expects 26% upside Kotak Institutional Equities on IT
In its latest report on the expectation for the IT sector, Kotak Institutional Equities estimate “industry revenue to decline by 1-2% in FY26 assuming a moderate recession.
» Read More
