Indian IT stocks witnessed a sharp rally on August 25 after two major triggers — US Federal Reserve chair Jerome Powell’s dovish stance at the Jackson Hole Symposium and JPMorgan’s bullish upgrade on TCS.
JPMorgan’s Big Call on TCS
JPMorgan upgraded Tata Consultancy Services (TCS) to Overweight from Neutral, raising its price target to ₹3,800 per share, which implies a 24% upside. The brokerage expects growth recovery for TCS from H2FY26, even as the stock has underperformed Nifty and Nifty IT due to earnings downgrades.
Also Read: East India Pitches for Bigger Role in India’s Growth
Powell’s Dovish Remarks Lift Sentiment
At Jackson Hole, Powell acknowledged “shifting risks” in the US economy, including labour market stress, and hinted at possible policy adjustments. Following this, Wall Street traders priced in an 84% chance of a Fed rate cut in September.
A rate cut in the US is expected to make emerging markets, especially Indian IT stocks, more attractive to global investors.
Market Update: Nifty IT Jumps Over 2%
Boosted by Powell’s speech and JPMorgan’s note, Nifty IT index surged more than 2% in early trade.
Wipro gained over 3%
Infosys, TCS, HCLTech, and Tech Mahindra also rose sharply
The Nifty IT index has delivered a 16% YTD gain, though only up 1.7% in the past month.
Market Insights
Lower US rates can drive foreign inflows into Indian IT.
Domestic institutional investors (DIIs) remain strong, with record inflows of $80 billion, double the foreign outflows.
S&P upgrade and GST reforms further strengthen the investment case for Indian equities.
Click here to explore: Tata Consultancy Services (TCS) Share Price
