Indian IT Sector Rallies on Hints of Lower US-China Tariffs and Upbeat Earnings
The Indian information technology sector witnessed a powerful rally on April 23, 2025, driven by a combination of easing global trade war fears and optimistic corporate earnings. The Nifty IT index jumped over 4%, contributing significantly to the broader benchmark indices’ gains. Major IT companies such as HCL Technologies, Coforge, Wipro, and Tech Mahindra saw their share prices climb sharply as market sentiment improved.
The positive momentum came on the back of comments by former US President Donald Trump, suggesting a likely rollback of harsh tariff policies on China. Trump’s statement that the 145% tariffs on Chinese imports would be reduced substantially sparked hopes of trade normalization between the world’s two largest economies. Additionally, China’s conciliatory tone urging dialogue and calling for an end to threats further reduced geopolitical tensions.
Highlights:
Nifty IT Index up over 4%, hitting 35,446 levels intraday.
Optimism follows Trump’s comments on reducing US tariffs on China.
IT rally adds significant weight to benchmark indices’ upward movement.
HCL Tech Leads Gains With Robust Q4 Earnings
HCL Technologies emerged as the top gainer in the IT pack, surging nearly 8% to Rs 1,595 per share after releasing its fourth-quarter results for FY25. The company reported a 6% YoY growth in revenue from operations, reaching Rs 30,246 crore, while net profit rose 8% YoY to Rs 4,307 crore. The results largely met market expectations and were seen as confirmation of the company’s resilience in the face of a challenging global macroeconomic environment.
According to analysts, the company’s balanced portfolio across digital, engineering, and cloud services, combined with prudent cost controls and consistent deal wins, has enabled it to maintain profitability. Positive management commentary and strong client retention figures helped boost investor confidence further.
Highlights:
HCL Tech Q4 FY25 revenue: Rs 30,246 crore, up 6% YoY.
Q4 net profit: Rs 4,307 crore, up 8% YoY.
Shares surged 8%, highest intraday gainer on the Nifty IT index.
Coforge, Persistent, LTI Mindtree Rally on US Revenue Exposure and Anticipated Results
Coforge shares surged over 6% to Rs 7,397, buoyed by the company’s strong exposure to the US market, which contributed 48% of FY24 revenue. Investors are betting on continued growth from its BFSI and travel verticals, which are expected to benefit from stable macro conditions and currency tailwinds.
Persistent Systems also saw a 5% jump to Rs 5,218.50, as investor optimism rose on the back of consistent deal execution and margin stability. The firm has been delivering steady results, supported by its cloud and enterprise modernization services.
Meanwhile, LTI Mindtree shares climbed nearly 5% to Rs 4,527.5, as anticipation builds ahead of its Q4 results. Analysts at Choice Broking estimate the company to post a 10.4% YoY rise in revenue, driven by the reversal of furloughs, ramp-up of new deals, and a pickup in BFS vertical momentum. The company is also expected to announce its final dividend for FY25, adding to investor enthusiasm.
Highlights:
Coforge up 6%, with 48% revenue from US.
Persistent Systems up 5%, driven by enterprise modernization demand.
LTI Mindtree up 5%, Q4 revenue seen rising 10.4% YoY.
Wipro, Tech Mahindra, Infosys, and Other Heavyweights Follow the Surge
Other major players joined the rally with Wipro and Tech Mahindra rising over 4%. These stocks had recently been under pressure, and the current upward movement also reflects value buying and short-covering activity amid a broadly optimistic earnings outlook.
Infosys, the second-largest IT exporter in India, saw its shares rise nearly 4% to Rs 1,477.20. Although Infosys faced muted expectations going into Q4, the relative improvement in margin guidance and upbeat commentary around large deal wins contributed to the rally.
Mphasis and TCS also gained over 3%, reinforcing sector-wide bullish sentiment. Traders and long-term investors are now eyeing further announcements from these firms, especially around demand trends in the BFSI sector, which remains the largest revenue contributor for Indian IT firms.
Highlights:
Wipro and Tech Mahindra gain 4%+.
Infosys rises nearly 4%, driven by margin optimism.
Mphasis and TCS up 3%, signaling broad-based IT buying.
Receding Recession Risk and Strong Q4 Signals a Turnaround for IT Sector
The rally in IT shares is not just the result of short-term triggers, but also reflects a broader improvement in sentiment around global growth prospects. Analysts believe that diminishing recession fears in the US, along with stabilization in global enterprise tech spending, are helping Indian IT stocks recover from their prolonged underperformance.
Furthermore, the recent correction in IT valuations—following last year’s bearish phase—has created attractive entry points for investors. The Q4 earnings season so far has exceeded expectations, especially for mid-tier IT firms, indicating better-than-anticipated demand recovery.
Highlights:
Easing trade tensions reduce US recession fears.
Attractive valuations and positive Q4 earnings support rally.
Sector outlook improves with signs of BFSI deal flow revival.
