Five reasons why NIFTY IT index surged over 4% today: HCLTech, Coforge, and Persistent Systems among top gainers

Information technology shares were witnessing strong buying interest on Wednesday, April 23. The measure of IT stocks on the National Stock Exchange zoomed over 4%, becoming the top sectoral gainer.

The sector was outperforming the main equity indices during the intraday period.

At 12:53 PM, the NIFTY IT index was trading 4.64% higher at 35,370.85 levels.

HCL Technologies was the top contributor, jumping 7.91%, followed by Coforge (6.53%), Persistent Systems (5.02%), LTIMindtree (4.56%), Oracle Financial Services Software (4.11%) and Tech Mahindra (3.95%) in the Nifty IT index.

Shares of Infosys (3.89%), Mphasis (3.74%), Wipro (3.745) and Tata Consultancy Services (3.06%) were also trading higher on Wednesday.

The Noida-based company reported a net profit of ₹4,307 crore for the quarter ended March 2025, marking an increase of 8.05% from ₹3,986 crore in the same period last year. On a sequential basis, HCL Technologies' net profit, however, declined 6.18% from ₹4,591 crore.

LTIMindtree is slated to announce its fourth quarter earnings today.

Investors gained confidence for the sector following US Donald Trump’s statement on Tuesday that he might scale down some of the tariffs imposed on China earlier. This led to the rally on the IT stocks.

The US markets closed higher on better earnings expectations and easing of trade tensions.

The Dow Jones Industrial Average gained 1,016.57 points, or 2.66%, to 39,186.98, the S&P 500 jumped 129.56 points, or 2.51%, to 5,287.76 and the Nasdaq Composite rallied 429.52 points, or 2.71%, to 16,300.42.

Shares of Amazon.com and Nvidia soared 3% each, and Apple jumped 2% in after-hours trading on Tuesday.

Tracking the gains on Wall Street, the Asian markets were mostly positive. Japan's Nikkei 225 rose 1.86% to 34,868.63. South Korea's Kospi gained 1.54% to the 2,525.56 level.

Hong Kong's Hang Seng advanced 2.12% to 22,018.89, while the Shanghai Composite was little changed, falling 0.10% at the 3,296.36 level.

According to a Reuters report, so far, 82 S&P 500 companies have reported earnings. Of those, 73% have beaten expectations. Analysts now see aggregate S&P 500 earnings growth at 8.1% for the January-March period, down from the 12.2% growth forecast at the beginning of the quarter, per LSEG.

Strong earnings by US companies augur well for IT companies as it indicates that US companies will increase their budgets on discretionary spending.

As per HCL Technologies’ guidance for the current financial year (FY26), the company’s revenue is expected to grow between 2 to 5% YoY in constant currency terms. The services revenue of HCL Tech is expected to stand between 2 to 5% in FY26, while the EBIT margin could be between 18 to 19%.

HCL's guidance for FY26 added to the market optimism on Wednesday.

Meanwhile, Infosys CEO and MD Salil Parekh said the company has guided for a revenue growth of 0-3% in constant currency terms in the current fiscal year due to uncertainty in the environment.