Nifty IT rises 1.5% on June 22: Key factors fuelling Coforge, Infosys, Tech Mahindra, among other IT stock gains

The sectoral benchmark, Nifty IT index, surged around 430 points or 1.56% to 27,856.40 points during Monday’s trading session, compared to 27,426.85 points at the previous stock market close, as per NSE data.

The key focus of stock market investors was towards buying and short covering major IT stocks, as the trend was likely witnessing a reversal from last week’s panic selling cues post Accenture’s subdued outlook for FY2027.

High-growth sectors like IT were also witnessing support from the easing geopolitical sentiment after the US and Iran negotiated and signed a preliminary MoU. The stocks were also gaining on the sentiment of an elevated US dollar rate in the market, a key catalyst for export-linked stocks.

Why are IT stocks rising today?

Stocks like Infosys, TCS, Tech Mahindra, Mphasis, among others, were among the top losers during the trading session on Friday, June 19. “Indian IT services companies continue to lack short-term triggers while their valuations seem close to trough,” said HSBC analysts in a note after the market crash.

In its outlook for FY27, Accenture revised its revenue target down to the range of 3% to 4%, compared to the company’s earlier estimates of 3% to 5%, as per the official announcement. Accenture trimmed its revenue outlook largely due to the impact of the West Asia crisis on the company’s consulting business.

Investors were focused on buying the IT stocks at a lower price for a short coverage move in the Indian markets on Monday, June 22.

A higher dollar value in the global market is a momentum catalyst for the export-linked and IT stocks, which have a majority of foreign clients bringing in dollar revenue. With the dollar trading higher, the Indian rupee witnessed major pressure, losing its strength against the greenback.

Investing.com data showed that the Indian rupee was trading 0.50% weaker at 94.791 against the US dollar on Monday’s market, compared to 94.32 at the previous currency market close.

As soon as the conflict normalises, the risk-taking ability in the market, the capital flow is expected to channel into high-growth sectors like IT and technology, in turn boosting client demand amid a push for AI systems.

However, concerns also remain about the weak macroeconomic triggers of budgeting and customer spending and the timely resolution of the conflict, which may impact the growth of IT companies.

“The commentary mirrors recent weak macro warnings from TCS, raising the risk of widespread growth guidance cuts across Indian IT firms,” said Morgan Stanley analysts earlier in a note.

Buzzing IT stocks today

*Note: All data related to the intraday high, intraday change, and YTD returns have been collected from the NSE website.