Why are IT Stocks Rising on May 29, 2025? Infosys, Persistent Systems Lead the Rally

Technology stocks are witnessing a strong rally today. The Nifty IT Index rose nearly 2% in intraday trade, with major IT companies like Infosys, Wipro, HCL Technologies, TCS, and Tech Mahindra climbing around 1% each. Infosys gained as much as 2%. The sector has risen more than 2% this week and nearly 6% this month. Several small- and mid-cap IT stocks have jumped over 40% during the month.

Nvidia’s Strong Quarterly Results

Nvidia, a leading AI chipmaker, beat quarterly sales expectations. The company’s earnings helped improve investor confidence, especially as the expected impact of tariffs was not as severe as feared. In post-earnings commentary, Nvidia CEO Jensen Huang addressed US-China tensions, expressing concern about being cut off from China’s AI developer base. He also welcomed the US government’s decision to cancel a rule that would have restricted global flows of US AI chips.

US Court Strikes Down Trump-Era Tariffs

A US federal court ruled that former President Donald Trump had exceeded his authority by imposing broad tariffs on imports from US trading partners. The decision, based on the International Emergency Economic Powers Act (IEEPA), nullified all of Trump's tariff orders since January. 

Also Read: Infosys Partners with LogicMonitor to Boost IT Operations Efficiency!

Infosys and Persistent Systems Among Top Gainers

Among the top gainers in the IT sector, Wipro led the pack with a 1.43% rise, closing at ₹250.98. Persistent Systems followed closely, gaining 1.40% to end the day at ₹5,662. LTIMindtree also saw a solid uptick of 1.20%, reaching ₹5,160.50. Mphasis registered a gain of 1.08%, closing at ₹2,558.90, while Coforge advanced 1.04% to settle at ₹8,555.

Conclusion

The rally in IT stocks on May 29, 2025, is driven by a combination of strong global cues, such as Nvidia’s earnings and US tariff relief, and domestic optimism supported by improved earnings guidance and stable business outlook. 

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