Indian IT stocks look poised to extend their rally after Infosys and Wipro's American Depositary Receipts (ADRs) gained in pre-market trading, signalling a positive start for the sector.
Infosys ADR was up 2% at $12.27 in pre-market trade, while Wipro ADR rose 1.54% to $1.98, indicating further strength in Indian IT counters when markets open. The upbeat cues come after the Nifty IT index emerged as the best-performing sector on Monday, rallying nearly 3.5% as investors returned to software stocks following last week's brief correction.
The sector had witnessed a two-day blip last week after global chip stocks surged while software stocks came under pressure, prompting profit booking across IT counters. However, sentiment has since improved as investors rotated back into the sector.
Among Monday's top performers, LTIMindtree led the gains, soaring nearly 7%, while Tata Consultancy Services (TCS) advanced more than 3.5%.
ALSO READ: 'FY27 Earnings Unlikely To Disappoint': Kenneth Andrade Spots Long-Term Winners In Auto, Pharma
The broad-based rally reflects renewed buying interest in large-cap IT companies after the recent weakness, with investors betting on improving sentiment in global technology stocks. The gains in Infosys and Wipro ADRs further reinforce expectations that the momentum could continue in Tuesday's session, especially after the strong rebound in the Nifty IT index.
Market participants will continue to track global technology stocks, US economic data and upcoming earnings announcements for further direction, as Indian IT companies derive a significant share of their revenue from overseas markets.
After briefly underperforming during last week's sell-off in global software stocks, the sector appears to have regained momentum, with strong buying in heavyweight IT names lifting overall market sentiment.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
