The Indian IT sector found fresh momentum on September 10 as IT stocks rallied for the second consecutive session, pushing the Nifty IT index up more than 2% in morning trade. The rally came after a prolonged five-day losing streak and was fuelled by two powerful triggers — renewed optimism over India-US trade talks and growing expectations of a US Federal Reserve rate cut.
By mid-morning, the Nifty IT index had surged to 36,075.95, with heavy buying seen across frontline IT counters including Oracle Financial Services Software (OFSS), Wipro, Infosys, Tata Consultancy Services (TCS), Tech Mahindra, HCL Tech, Persistent Systems, and Mphasis.
Trade Talks Between India and the US Spark Investor Optimism
One of the biggest drivers behind the market mood was the announcement by US President Donald Trump that Washington and New Delhi would resume negotiations to address ongoing trade frictions.
In a post on Truth Social, Trump wrote: “I am pleased to announce that India and the United States of America are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Narendra Modi, in the upcoming weeks. I feel certain that there will be no difficulty in coming to a successful conclusion for both of our Great Countries!”
Prime Minister Modi responded positively on social media, highlighting that the talks would help unlock the potential of the India-US partnership.
While Indian IT services were not directly targeted by tariffs, easing trade tensions benefits IT companies as the US remains their largest market. Investors cheered the announcement, seeing it as a sign that policy clarity and smoother bilateral relations could support stronger revenue visibility for IT firms.
Also Read: Sensex Surges 500 Points, Nifty Reclaims 25,000 on Global Optimism
Fed Rate Cut Expectations Add Another Tailwind
Adding to the positive sentiment were hopes that the US Federal Reserve may cut interest rates in its upcoming policy meeting scheduled for September 16–17.
The optimism stems from weak US economic data. According to the Bureau of Labor Statistics, the American economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated. This, coupled with pressure from President Trump’s administration, has raised expectations that the Fed will ease rates to support growth.
For Indian IT companies, which derive a significant share of their revenue from the US, a Fed rate cut could be a major positive. Lower rates typically improve discretionary spending and business confidence in the US, boosting demand for outsourcing, digital transformation, and IT services contracts.
Infosys Buyback Proposal Adds to the Rally
The positive momentum also came on the back of Infosys’ announcement that its board will meet on September 11 to consider a buyback of fully paid-up equity shares.
If approved, this will be Infosys’ first share buyback since 2022, when it had launched a ₹9,300 crore buyback program with a minimum price of ₹1,850 per share. News of the upcoming board decision has already sparked strong investor interest, providing additional support to IT stock valuations.
OFSS Leads Gainers; Wipro, TCS, Tech Mahindra Also Shine
The star performer of the day was Oracle Financial Services Software (OFSS), which surged nearly 8% after its parent company, Oracle Corp, announced a strong growth outlook for its cloud business. Oracle Corp shares hit a record high in the US, and the positive global sentiment spilled over to its Indian subsidiary.
Other top gainers included:
Persistent Systems, up nearly 5%.
Mphasis, which rose 4%.
Coforge and LTI Mindtree are each gaining over 3%.
Wipro, HCL Tech, and Tech Mahindra, which added more than 2% each.
TCS, up nearly 2%, while Infosys inched higher by over 1%.
The broad-based gains indicated renewed investor confidence across the IT sector, which had been under pressure in recent weeks due to global demand concerns.
Analysts React: Optimism with Caution
Market experts welcomed the rally but urged investors not to get carried away by the sudden surge.
Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Pvt. Ltd., noted: “The dual tailwinds from GST rationalization and anticipation of a US Fed rate reduction are acting as a long-needed support to Indian equities, insulating them from global tariff and demand uncertainties.”
He added that while the IT industry has faced challenges this year, the sector remains a core pillar of India’s growth story and continues to offer long-term value.
On the other hand, Bhavik Joshi, Business Head at INVasset PMS, struck a more cautious tone. He said: “Foreign investors remain cautious, discouraging a sustained rally. While local policy cues and GST relief offer seasonal optimism, the lack of a sharp earnings turnaround or acceleration in contract wins keeps sentiment muted. The buyback announcement from Infosys may provide a short-lived jolt, yet the broader narrative remains one of structural caution rather than exuberance.”
Ajit Mishra, SVP at Religare Broking, echoed similar views: “Renewed optimism around capital allocation, coupled with easing rate-cut expectations globally, fueled broad-based gains across the sector. However, participants shouldn’t get carried away with a single day move and should wait for some signs of stability citing the prolonged underperformance.”
Broader Context: IT Sector Still Faces Global Headwinds
While the two-day rally has brought relief to investors, experts caution that the sector’s global tether remains intact. Demand visibility in the US and Europe continues to be clouded by slower tech spending, tighter budgets, and delayed decision-making on large deals.
Analysts argue that structural recovery will take time and that IT stocks may continue to underperform the broader market until global business pipelines improve. However, the current rebound is being seen as a sign of resilience and a reminder of the sector’s strategic importance to India’s economy.
Conclusion
The rally in IT stocks for the second consecutive day highlights how quickly sentiment can turn when global and domestic triggers align. With Nifty IT surging more than 2%, led by OFSS, Wipro, TCS, Infosys, and Tech Mahindra, the sector has regained momentum after a difficult phase.
Optimism over India-US trade talks, expectations of a Fed rate cut, and Infosys’ buyback plan together created the perfect recipe for a strong rebound.
Still, analysts emphasize the need for caution, pointing out that sustained growth will depend on actual earnings recovery and global demand revival. For now, though, investors are breathing easier as IT stocks shine once again, proving that the sector remains one of the strongest pillars of India’s stock market.
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