Nifty IT index climbs 3% to one-month high: Here are factors fueling IT stocks rally on Friday

The IT shares rallied on Friday, May 29, despite weak market sentiment as strong buying momentum in technology majors pushed the Nifty IT index higher.

The Nifty IT index jumped 3% to its one-month level of 29,747.20. As many as 9 stocks out of 10 listed on the index were trading in green. The Nifty Midsmall IT & Telecom gauge has also advanced 2% to its intraday high of 9,644.75 on Friday.

At the time of writing the article, LTIMindtree was the top contributor, climbing 3.67%, followed by Coforge (3.65%), Infosys (3.62%), Persistent Systems (2.7%) and Mphasis (2.19%). Further, Tech Mahindra (2.03%), Wipro (1.58%), HCL Technologies (1.37%) and TCS (0.44%) were also trading with gains. Oracle Financial Services Software was the only loser, falling 1.78%.

Here are some factors behind IT stocks' rally

US-Iran deal talks

The United States and Iran have reached a tentative memorandum of understanding (MoU) that would extend the current ceasefire by 60 days and pave the way for fresh negotiations on Tehran's nuclear programme, senior US officials said on Thursday.

However, the proposed agreement still awaits final approval from US President Donald Trump, who has not yet decided whether to endorse the deal.

"Everything depends on what the president wants to do. And President Donald Trump is not going to make a bad deal for the American people," US Treasury Secretary Scott Bessent told reporters at a White House briefing.

The proposed MOU would formally extend the ceasefire, reopen the Strait of Hormuz to international shipping and launch a new round of negotiations aimed at addressing concerns over Iran's nuclear programme, according to US media reports.

US markets

On Thursday, the S&P 500 and Nasdaq posted record closing highs after reports of the US and Iran reaching a draft agreement. Tech shares also moved higher. Microsoft gained 3.5% after news website the Information reported that the company would release a new coding model next week.

Asian markets

Market investors in Asia were trading based on an overall positive market sentiment while keeping a cautious eye out for the volatile oil prices in the market. Indices in Japan and South Korea hit fresh records on Friday.

Except for China’s Shanghai Composite, which slipped 0.74%, all the other Asian indices gained on Friday. Japan’s Nikkei 225 was trading 2.65% higher at 66,456 points; Hong Kong-based Hang Seng index was up 0.65% to 25,169 points; and South Korea’s Kospi was at the 8,476.15 level, soaring 3.43%.

Wipro ADR

Shares of Wipro rallied as much as 4.67% to ₹211 apiece on the NSE, tracking a sharp overnight rally in the company’s ADR in the US market.

Data show that the Wipro ADR settled 18.54% higher at $2.430 on the New York Stock Exchange (NYSE).

ADRs, or American Depositary Receipts, are financial instruments that allow US investors to buy shares of foreign companies — such as Wipro — on American stock exchanges without directly trading in foreign markets. In simple terms, ADRs represent shares of a non-US company and trade in US dollars during Wall Street hours, making it easier for global companies to attract international investors.

According to market participants and news reports, the ADRs rallied sharply following the company's latest business update.

On May 28, Wipro issued a press release announcing its expanded partnership with ServiceNow to implement and scale the impact of agentic AI workflows across core enterprise functions such as IT, HR, procurement, and cybersecurity.