Infosys, Coforge, OFSS: IT stocks rally, NIFTY IT trades over 1% higher in weak market; here is why

Unlike recent sessions, when the IT pack remained under selling pressure, the sector emerged as an outperformer on Monday.

Last seen, the NIFTY IT index was trading 1.06% higher at 28,010.35 levels, with all 10 constituents in the green.

Infosys was trading 0.63% higher, while Tech Mahindra was up 2.53%. Coforge was up 2.33%, and Oracle Financial Services Software (OFSS) was trading over 3% higher.

LTM was trading over 2% higher at ₹4,055.10 apiece on the NSE.

Why IT stocks are rising today

• IT stocks rallied on Monday as investor sentiment improved following the decline in the Indian rupee against the US dollar.

The rupee opened on a weak note and slumped to an all-time low of 96.25 per US dollar in early trade on Monday, as elevated crude oil prices, global uncertainty, and a stronger dollar continue to remain key risks for the domestic unit.

A weaker rupee is generally considered positive for IT companies because a large portion of their revenue comes from overseas markets, particularly the US. When the rupee depreciates, dollar-denominated earnings translate into higher revenue in rupee terms, supporting margins and profitability.

Companies such as Infosys, Tata Consultancy Services, HCL Technologies, and Coforge witnessed buying interest amid expectations of better earnings realisations.

• Investor sentiment was further boosted by the continued strength in software and technology stocks on Wall Street. Gains in major US tech companies improved risk appetite globally and lifted optimism around the demand outlook for IT services firms.

Market participants also believe that stabilising macroeconomic conditions in the US and resilience in global tech spending could support Indian IT companies going ahead.

A rise in US tech stocks is generally seen as positive for Indian IT companies such as Infosys, Tata Consultancy Services, Wipro, and HCL Technologies because they derive a significant share of their revenue from US clients.

Strength in Wall Street’s technology pack signals healthy enterprise tech spending, improving business confidence, and continued demand for digital transformation services.

While Indian IT firms are not yet viewed as frontline AI product companies like major US tech giants, they are aggressively investing in AI capabilities, partnerships, and AI-led services to support global clients.

Market participants believe Indian IT firms could benefit as companies worldwide increasingly seek support for AI integration, cloud migration, data management, and technology modernisation.

What TCS has said

The country's largest IT firm, Tata Consultancy Services (TCS), aims to become the world's largest AI-led technology services company, with 130 of its top 139 clients already choosing it as their AI services partner, CEO and Managing Director K. Krithivasan said.

In his letter to shareholders in the company's Annual Report for 2025-26, Krithivasan noted that FY26 marked an "inflection point" for enterprise AI, as customers decisively moved from experimental pilots to scaled deployments.

"To realise the opportunities offered by AI, we set out a bold aspiration to become the world's largest AI-led technology services company. Our strategy to realise this aspiration is to be a full-stack AI services player from infrastructure to intelligence," Krithivasan wrote.

Krithivasan highlighted that 130 of TCS' top 139 clients – those generating over $50 million in annual revenues – have selected the company as their AI services partner.

To support this massive technological shift, TCS has aggressively upskilled its workforce. Krithivasan stated that over 2,70,000 employees now possess advanced AI skills, a threefold increase from the previous year.