Nifty IT Stocks Add Over Rs 18,000 Crore To Investor Wealth Amid US Rate Cut Hopes

The NSE Nifty IT index surged to its highest level since April 29 on Thursday, driven by a broad-based rally in information technology stocks amidst expectations of a Federal Reserve rate cut following softer US CPI data. IT stocks collectively added Rs 18,430 crore in market capitalization, reaching Rs 30.3 lakh crore by 12:30 p.m.

During the session, the NSE Nifty IT index climbed 1.75% to 33,696.20, supported by significant gains in shares of Mphasis Ltd. and L&T Technology Services Ltd. By 12:37 p.m., the index was up 223.30 points at 33,340.70, representing a 0.67% increase.

Investor sentiment favoured risk-taking as softer-than-expected US inflation figures fueled expectations of imminent easing in the world's largest economy's monetary policy.

The performance of these IT firms hinges significantly on macroeconomic conditions in the US, as most Indian IT companies conduct substantial business with American clients.

In April, the US Consumer Price Index rose by 0.3% sequentially, a slight moderation from the 0.4% growth seen in the previous month, slightly lower than the 0.4% estimate in a Bloomberg survey.

Year-on-year, the US CPI in April stood at 3.4%, a marginal decline from March's 3.5%, aligning closely with Bloomberg's survey forecast.

Mphasis Ltd. emerged as the top gainer in the index, surging by as much as 4.25% to Rs 2,371.00—the highest level since April 30—followed by L&T Technology Services Ltd. and Tech Mahindra Ltd., with intraday rises of 2.47% and 2.90%, respectively.