- Nifty IT surged over 4% on Tuesday, outperforming flat benchmark indices
- Infosys and TCS led gains, both rising more than 5%, with TCS near 6%
- Rally driven by positive global cues from Nvidia CEO Jensen Huang's speech
Nifty IT has emerged as the biggest star on Tuesday's trade. Even with benchmark indices trading in trade, the IT index has surged more than 4%, driven by positive global cues surrounding the IT and technology space.
The strong rally in the IT index has been led by Infosys and Tata Consultancy Services, with both IT majors trading with gains of more than 5%. TCS, in fact, is flirting in the 6% range while Coforge, too, has gained more than 5% in trade on Tuesday.
What's pushing Nifty IT?
The unprecedented rally in Nifty IT comes on the back of improved sentiment in the global technology space, which was spurred by Nvidia founder Jensen Huang's speech at the GTC Taipei 2026 event on Monday.
NDTV Profit spoke to Harshal Dasani, Business Head, INVAsset PMS, who believes Huang's speech played a key role in lifting sentiment in the IT space.
“The Nifty IT rally is not just a technical bounce. It is the market reassessing the AI risk premium after Jensen Huang effectively changed the debate from ‘AI will replace software' to ‘AI will consume more software'.
"That matters for Indian IT because the sector had been priced as a casualty of automation. Today, the market is beginning to price it as an implementation layer for enterprise AI," he said.
During his speech, Huang dismissed fears that global tech and software companies will be made obsolete by AI, even stressing that the onset of AI would require these software companies to level up on hiring.
He further stated that AI is at a stage where it has become profitable and how software companies use and execute these agentic AI systems will go a long way in dictating their future profitability.
Nvidia also confirmed the start of production for the Vera Rubin systems, which will replace the existing Blackwell architecture, promising higher execution of AI capabilities for enterprises.
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