Indian IT Stocks Rally on Sep 17; Persistent Systems, Mphasis, LTI Lead Gains

Shares of Indian IT companies continued their upward momentum on September 17, extending gains for a second consecutive session. Optimism stems from expectations that the US Federal Reserve will announce a rate cut after its ongoing FOMC meeting.

As per news reports such a move could boost discretionary spending in the US, a critical market for India’s IT sector.

Fed Rate Cut Expectations Fuel Rally

The US Federal Reserve, led by Jerome Powell, is expected to announce the outcome of its September 16–17 FOMC meeting later today. Markets remain divided on the size of the rate cut, with forecasts ranging from 25 basis points to 50 basis points, though some also see a possibility of no change.

For Indian IT firms, a cut would mean higher US corporate spending, particularly in tech services, driving demand for outsourcing and digital transformation projects.

Market Performance of IT Stocks

The Nifty IT index climbed over 0.8% in morning trade, ranking among the top performing sectors. Gains were led by mid and large cap IT firms.

Top IT Gainers on Sep 17, 2025

Note: The above stock gains are as of 1:00 PM on September 17, 2025.

Read More: India’s $283 Billion IT Sector Faces Uncertainty as U.S. Weighs Outsourcing Tax.

Conclusion

The IT sector’s gains reflect investor optimism around a Fed rate cut, which could strengthen US tech spending and, in turn, benefit Indian IT exporters. However, the market will take clearer direction after Jerome Powell’s announcement later today.

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