Nifty IT Hits 5-Month High at 39,275 as Infosys Jumps 3% on US Lawsuit Settlement

Information technology stocks were in strong demand on Monday, December 22, 2025. The Nifty IT index climbed over 1% to 39,275, its highest level since July 2, 2025.

Around 9:19 am, the Nifty IT index was up 1.2%, making it the top-performing sector, while the Nifty 50 rose 0.5%.

Since October 2025, the IT index has gained 17%, clearly outperforming the Nifty 50, which has risen 6% during the same period. However, on a calendar-year basis, the IT index is still down 9.4% in 2025, compared with a 10% gain in the Nifty 50.

Infosys Jumps 3%; Other IT Stocks Gain

Among individual stocks, Infosys surged nearly 3% to an intraday high of ₹1,693.20 on the NSE. The stock has rebounded about 30% from its 52-week low of ₹1,307 hit in April 2025.

Other IT majors such as TCS, Wipro, Coforge, Persistent Systems, LTIMindtree, HCL Technologies, and Tech Mahindra were also trading around 1% higher.

Why Did Infosys Shares Rise Today?

Infosys shares moved higher after the company said a US court granted final approval to a proposed settlement related to class action lawsuits involving its subsidiary, Infosys McCamish Systems LLC.

Under the settlement, McCamish will pay $17.5 million into a settlement fund. If there is no appeal within 30 days, the settlement will fully resolve the case without any admission of wrongdoing.

Separately, Infosys clarified that recent volatility in its ADR price on the NYSE, which led to two temporary trading halts, was not linked to any material event requiring disclosure.

What Is Driving The Recent IT Sector Rally?

Several factors have supported the recent outperformance of IT stocks:

• IT hiring recovery: India’s IT hiring rose 16% year-on-year in 2025 to about 1.8 million roles, led by the rapid growth of Global Capability Centres (GCCs), which now account for 27% of hiring demand.
• Focus on new-age skills: Hiring is increasingly concentrated in AI, cloud, cybersecurity, and data roles.
• Improving outlook for 2026: IT hiring is expected to grow 12–15% in 2026, mainly driven by GCC expansion.

Read More, Gold Price Hit-All Time on December 22 on Rate Cut by US Fed: World Gold Council Expects a Suprise in 2026!

Conclusion

The Nifty IT index’s move to a 5-month high reflects improving sentiment driven by Infosys’ legal clarity, better hiring trends, easing valuation pressure, and growing demand for AI-led IT services. 

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