IT stocks rally over 2%: Infosys, Wipro, Mphasis top gainers; Nifty IT jumps 1.7%

IT services companies' shares witnessed a positive momentum on Wednesday, July 2, with Infosys, Mphasis and Wipro being the top gainers.

The Nifty IT index touched an intraday high of 39,519.50 levels till the time of writing this report, up 1.7%. Last seen, the index was up 0.87%.

Except for Oracle Financial Services Software (-0.54%), all other constituents of the IT index advanced.

Investor sentiment was optimistic after US President Donald Trump on Tuesday said that the US could reach a trade deal with India that would help American firms compete in India and leave it facing far lower tariffs.

Speaking to the reporters, Trump said he believes India was ready to lower barriers for US companies, which could pave the way for an agreement staving off the 26% rate he announced on April 2, before pausing it until July 9.

“Right now, India doesn't accept anybody in. I think India is going to do that; if they do that, we're going to have a deal for less, much less, tariffs,” he said.

Negotiations between India and the US will enter the sixth day on Tuesday in Washington. According to reports, the talks are reaching a crucial stage, and India is demanding greater market access for its labour-intensive goods.

The Indian team, headed by special secretary in the Department of Commerce Rajesh Agrawal, is in Washington for negotiations on an interim trade agreement with the US.

Meanwhile, credit rating agency ICRA has reaffirmed a stable outlook for the Indian IT services industry, forecasting a year-on-year revenue growth of 2–3% in US dollar terms for the fiscal year 2025-26.

ICRA's analysis, based on a sample of 15 leading IT companies representing approximately 60% of the industry's revenue, indicates that the sector will experience modest revenue growth of 2–3% in FY2026, slightly lower than the 2.9% growth recorded in FY25.

The subdued earnings momentum is largely attributed to uncertainties stemming from the US tariff imposition, which is expected to weigh on IT budget allocations in key markets.