IT Stocks Today (July 28): Indian information technology (IT) stocks witnessed strong buying interest in early trade on Tuesday, bucking the broader weakness in Asian technology markets. Leading companies such as Coforge, TCS, Infosys, Oracle Financial Services Software (OFSS), Tech Mahindra, Persistent Systems, Mphasis, and HCLTech traded sharply higher, helping the Nifty IT index rise nearly 2.5%.
The rally comes at a time when technology shares across Asia, especially semiconductor companies, are under pressure due to concerns over artificial intelligence (AI) spending and increasing competition from Chinese chipmakers.
Nifty IT Index Gains Nearly 2.5%
Around 9:30 AM, the Nifty IT index was trading at 30,170.60, registering a gain of 2.48%.
Among the top performers:
- Coforge surged 8.13%
- Hexaware Technologies climbed 5.25%
- Mphasis advanced 4.64%
- Persistent Systems gained 3.26%
- TCS rose 3.01%
- Tech Mahindra added 2.95%
- Infosys increased 2.57%
- Oracle Financial Services Software (OFSS) gained 2.26%
- HCLTech moved up 1.81%
Coforge emerged as the biggest gainer after investors reacted positively to the company’s June-quarter earnings and optimistic management outlook.
Why Are IT Stocks Rising Today?
Indian IT Companies Outperform Global Tech Weakness
While semiconductor stocks across South Korea, Japan, and China faced heavy selling, Indian software companies managed to outperform.
South Korea’s KOSPI index fell more than 8%, while Japan’s Nikkei declined around 4% as investors reduced exposure to AI-linked chip manufacturers.
Technology giant Nvidia also slipped nearly 5% overnight after reports suggested it could provide substantial financial backing for an OpenAI data-center project, raising concerns over capital requirements across the AI ecosystem.
Major Asian chip companies, including Samsung Electronics, SK Hynix, and Tokyo Electron, were among the biggest losers.
Unlike chip manufacturers, Indian IT service providers are less dependent on semiconductor production cycles, making them relatively insulated from the ongoing weakness in global hardware stocks.
Investors Buy Quality IT Stocks After Recent Correction
Another key reason behind Tuesday’s rally is renewed buying in fundamentally strong IT companies following a period of price correction.
Market participants appear to be accumulating leading software exporters such as TCS, Infosys, Coforge, and Tech Mahindra, expecting long-term demand for digital transformation, cloud services, and AI implementation to remain strong.
Falling Oil Prices Improve Market Sentiment
The sharp decline in global crude oil prices has also supported investor confidence.
Brent crude has eased significantly following signs of reduced geopolitical tensions between the United States and Iran. Lower energy prices could help contain global inflation, reduce business costs, and encourage higher corporate technology spending—factors that generally benefit the IT sector.
Optimism Around US Technology Spending
Indian IT companies generate a substantial portion of their revenue from North America. Investors are positioning themselves ahead of quarterly earnings from major US technology companies, hoping for positive commentary on enterprise technology budgets.
Expectations that businesses will continue investing in AI, cloud computing, cybersecurity, and digital transformation have further strengthened sentiment toward Indian IT stocks.
Coforge Q1 Results Drive Strong Buying Interest
Coforge’s impressive quarterly performance played a major role in Tuesday’s rally.
The June quarter was the first to fully include the financial impact of Encora Holdings, making year-on-year comparisons less meaningful.
The company reported:
- Revenue of $592.2 million, up 21.1% sequentially from $489.1 million
- Revenue in Indian currency rose 24.2% quarter-on-quarter to ₹5,527.7 crore
Despite strong revenue growth, net profit declined 15.3% to ₹518.6 crore, compared with ₹612.3 crore in the previous quarter.
The decline was mainly due to one-time expenses associated with the Encora acquisition, including:
- ₹61.3 crore toward acquisition and integration costs
- ₹5 crore in legal expenses
- ₹10.8 crore in provisions for customer receivables
These costs were partially offset by ₹22.1 crore in foreign exchange gains following the devaluation of the Bolivian currency, resulting in a net exceptional impact of approximately ₹55 crore.
AI-Led Growth Boosts Confidence
Coforge reported a combined EBIT margin of 16%, comfortably above its full-year guidance of 15.5%.
CEO Sudhir Singh said the improvement reflects the company’s successful integration of artificial intelligence across client projects as well as internal operations.
He also highlighted that the Encora acquisition has now been fully integrated operationally, while the company continues to witness strong demand, record business visibility, and a rapidly growing pipeline of AI-driven opportunities.
According to the management, these factors position Coforge for what could be an exceptionally strong performance in FY27.
Outlook for Indian IT Stocks
Although global semiconductor companies continue to face pressure, Indian IT firms appear to be benefiting from their diversified business models, resilient client demand, and growing adoption of AI-powered digital services.
With improving market sentiment, easing crude oil prices, and expectations of healthy technology spending in the US, analysts believe quality IT stocks could continue attracting investor interest in the near term. However, upcoming global earnings, macroeconomic data, and AI investment trends will remain key factors influencing the sector’s direction.