NIFTY IT surges over 2%, adds 600 points intraday; all 10 constituents trade higher

The IT stocks were trading in positive territory in the afternoon trade on Tuesday, June 16, although they were off their day's highs. Data show that the NIFTY IT index rallied as much as 596 points, or 2.12%, during the session.

In the afternoon deals, all ten constituents were trading in the green, with HCL Technologies leading the pack with a gain of over 2.28%. Infosys was trading 0.22% higher, while Tata Consultancy Services (TCS) shares were up 1.02% at ₹2,184.10 apiece.

Besides, Sonata Software, which is not a part of the NIFTY IT index, was surging in the trade. The stock jumped as much as 19.8% to ₹311.90 on the NSE.

The NIFTY IT index comprises 10 companies, selected based on criteria such as being part of the IT sector, having high free-float market capitalisation, strong liquidity, high trading frequency, and meeting NSE's index eligibility requirements.

Final selection is largely driven by free-float market capitalisation among eligible companies.

What you need to know

The rally in IT stocks in India could be attributed to factors such as the rally in tech stocks in the US, easing geopolitical concerns, and Indian firms' aggressive push in AI.

The Dow Jones Industrial Average gained 468.77 points, or 0.92%, to close at a record high of 51,671.03. The 30-stock index also touched a fresh all-time intraday high during the session. The S&P 500 advanced 1.65% to 7,554.29, while the Nasdaq Composite jumped 3.07% to settle at 26,683.94. The tech-heavy index posted its strongest single-day gain since March 31.

SpaceX shares soared nearly 20% on Monday, extending gains after surging 19% during their public market debut on Friday..

The United States and Iran finalised a deal to end their 107-day war and open the Strait of Hormuz, the narrow waterway used to ferry one-fifth of the global oil supplies, on Friday after an in-person signing of the agreement in Switzerland.

US President Donald Trump made the announcement on Truth Social on Sunday evening, easing pressure on the global energy markets, as officials said the peace agreement would be signed on June 19 in Switzerland.

Companies are investing in AI platforms, training employees, and building partnerships with global technology providers.

For instance, HCL Technologies on Monday announced that it will acquire a 10.46% stake in the Bengaluru-based startup for ₹1,427.25 crore, becoming its lead strategic investor.

With the funding round, Sarvam joins Bhavish Aggarwal-founded Krutrim among the select Indian AI startups to attain unicorn status.

The investment comes amid growing calls for India to build sovereign AI capabilities, particularly after the US government imposed export controls restricting foreign nationals' access to Anthropic's Fable 5 and Mythos 5 models. This has intensified the focus on developing indigenous AI infrastructure and foundational models.

Last week, IT services major Tata Consultancy Services (TCS) secured a multimillion-euro deal from global life and pensions insurer Canada Life to modernise its IT infrastructure across Europe.

The company, however, did not disclose the exact financial value of the contract.

Under the multiyear agreement, TCS will work to modernise and manage Canada Life's data centres, core infrastructure, end-user computing, and software lifecycle management, the company said in a regulatory filing on Monday.

Besides, Tata Consultancy Services (TCS) Chairman N Chandrasekaran recently said the day is not far when TCS will have as many artificial intelligence (AI) agents as its human workforce, emphasising that the company does not plan to downsize its staff.

Addressing the company's 31st Annual General Meeting on Tuesday, Chandrasekaran said that TCS is investing in building AI agents for internal operations, solution frameworks, and client-specific work.

He emphasised that TCS will continue to hire, stating that once the transition occurs, the AI world will produce "so many more opportunities" that will require new talent.

"The company has half a million employees. The day is not far when the company will have half a million AI agents.

"There is no downsizing of staff. That is not planned at all. We just want to have the right talent. We want to use the agents.

Similarly, Infosys, earlier in June 2026, said that it had partnered with Germany-based Handelsblatt Media Group to launch an AI-powered editorial engine to automate editorial workflows to accelerate content delivery and drive deeper reader engagement.

In a regulatory filing, the IT firm said that, along with Handelsbatt Media Group, it has launched Editorial Link Intelligence (ELI), which leverages Infosys Aster, an AI-amplified marketing suite.

The editorial recommendation engine was developed exclusively for Handelsblatt and WirtschaftsWoche. It has been designed to elevate digital journalism by delivering “enhanced storytelling and driving deeper reader engagement”.

Other key details

Apart from the AI-led growth narrative and gains in global technology stocks, easing concerns over proposed H-1B visa restrictions in the US, a weaker rupee, and attractive valuations have also fuelled investor interest in Indian IT stocks.