Wipro, TCS, Infosys: IT shares surge on value buying, buoyant growth in services sector in Q1

Shares of information technology (IT) companies were witnessing buying interest in trade on Monday, September 1, after government data showed that buoyant growth in the services sector, which is dominated by the services sector, led the Indian economy to register real GVA growth of 7.6% in Q1 of FY 2025-26.

Analysts said that value buying at lower levels after witnessing a sharp sell-off also aided the upmove in IT stocks.

The measure of IT stocks on the National Stock Exchange was the top sectoral gainer. The NIFTY IT index rose as much as 1.68% to hit an intraday high of 35,771.25. All 10 shares in the NIFTY IT index were trading higher, led by Mphasis' 2.72% gain.

Oracle Financial Services Software, Coforge, Infosys, Tech Mahindra, Tata Consultancy Services (TCS), Persistent Systems and Wipro also rose between 1 and 2.6%.

IT heavyweights Infosys and TCS were among top contributors towards over 350-point gain in the SENSEX. They collectively added over 110 points towards SENSEX.

The Indian economy grew by 7.8% in the April-June quarter of the current financial year 2025-26, aided by a robust performance of the services sector, according to government data released on Friday.

The growth in real gross domestic product (GDP) in Q1 of FY26 is higher than the 6.5% expansion recorded in the same period a year ago, the National Statistics Office (NSO) said in a statement.

In absolute terms, real GDP at constant (2011-12) prices is estimated at ₹47.89 lakh crore in Q1 of FY26, compared to ₹44.42 lakh crore in Q1 of FY25. At current prices, nominal GDP grew by 8.8% to ₹86.05 lakh crore from ₹79.08 lakh crore in the year-ago period.

India remains the fastest-growing major economy, as China's GDP growth in the April-June period was 5.2%.

Meanwhile, global capital markets and investment group CLSA said that its global macroeconomists are expecting 75 basis points (bps) in rate cuts in the US over the next 1-1.5 years, and that could lead to a 10%-15% increase in valuation multiples for Indian IT companies.

CLSA expects potential for discretionary demand revival in the real estate, utilities, materials, staples and energy sectors, and it remains positive on India’s IT sector on attractive valuations.

As of 10:10 am, the measure of IT stocks traded 1.5% higher at 35,710 and was the top gainer among the sectoral gainers.