Nifty IT Jumps 6% on India–US Trade Deal; Tech Mahindra, Infosys, TCS Lead Rally

IT stocks were in strong demand on Tuesday, with the Nifty IT index jumping nearly 6% intraday to around 40,300 after the announcement of the India–US trade deal.

By late morning, the index was still trading over 2% higher, outperforming broader market gains.

Tech Mahindra Hits Record High

Tech Mahindra was the top gainer, rising 8% to hit a record high of ₹1,854. HCL Technologies also touched a new 52-week high after gaining nearly 6%.

Other major IT stocks such as Infosys, TCS, Wipro, Mphasis, and Persistent Systems climbed between 6% and 8% during intraday trade.

IT Stocks Outperform Market

Over the past six months, the Nifty IT index has gained 12%, beating the Nifty 50’s rise of 4.3%, showing improving investor confidence in the sector.

Why IT Stocks Are Rising Today

The rally followed the India–US trade deal, under which the US reduced reciprocal tariffs on Indian goods to 18%. While IT services are not directly impacted by tariffs, the deal improves overall sentiment.

Budget 2026 Adds Mild Support

Budget 2026 includes a few supportive measures for IT:

• Buyback proceeds are treated as capital gains, which may support shareholder returns
• Easier safe-harbour rules, reducing compliance burden
• Tax holiday for foreign firms using Indian data centres for global cloud services

These measures are expected to support long-term growth in data centres, AI workloads, and cloud services.

Also Read: Best Long-Term Stocks in Jan 2026 – 5yr CAGR Basis!

Conclusion

The sharp rise in IT stocks reflects improved sentiment after the India–US trade deal rather than immediate earnings gains. While near-term impact may be limited, better policy visibility and budget support strengthen the sector’s long-term outlook.

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