Nifty IT Extends Rally On US-India Trade Optimism: Persistent Top Gainer, Mphasis Jumps 5%

Constituents of the Nifty IT index on Wednesday pushed the Nifty 50 higher to reclaim the 25,000 mark, after US President Donald Trump said India and the US are continuing negotiations to address trade barriers between the two nations, and that he looks forward to speaking with Prime Minister Narendra Modi. Following which PM Modi also responded saying that he is confident of India and the US concluding trade talks early.

Nifty IT outperformed Nifty 50 as it reached an intraday high of 2.54% while Nifty 50 hit an intraday high of 0.60% to reach 25,017.40

Among Nifty IT, Persistent Systems Ltd. was the top gainer as it gained as much as 4.85% at intraday high to trade at Rs 5,380, the second biggest gainer was Mphasis Ltd., which rose 4.69% to trade higher at Rs 2,987 apiece. Meanwhile, Coforge Ltd. also rose 3.88% to become the third biggest gainer at Rs 1,762.50 apiece.

The NSE Nifty IT rose for second session in a row as Tata Consultancy Services Ltd., and Infosys share led in terms of Nifty 50 point contribution. Infosys contributed 16.05 points to Nifty 50 while TCS was contributing 12.98 points to the index.

The renewed tariff optimism comes days after the SCO Summit which India attended alongside Russia and China. The central focus at the meet was strengthening of energy ties between India, Russia and China.

The meeting held significant as it was the first one that India attended after seven years, following India-China's border tension earlier, and 50% tariff on India imposed by US President Trump.